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Xbox Series X sales are down, but there's some good news for Microsoft
Microsoft's latest earnings report were impressive, but what about its Xbox division?
Microsoft’s earnings report for the quarter ending March 31, 2023, paints a rosy picture for the company. But how did its Xbox division perform?
Well, it’s a bit of a mixed bag, honestly. Xbox gaming revenue fell by 4%, and Xbox hardware revenue was down 30% – which isn’t a small drop by any means. Microsoft said that supply issues have had an impact, but one could point the finger at a lack of must-have releases for Xbox Series X and Xbox Series S this year. Our best Xbox Series X games list hasn’t changed in quite some time.
Offsetting these dips somewhat is the fact that content and services, which is primarily driven by Xbox Game Pass, grew by 3%. This will be encouraging for Microsoft and its Xbox division in particular, as Microsoft has moved away from measuring its success with console and game sales and instead is focusing on player engagement and overall Game Pass subscribers.
➡️ The Shortcut Skinny: Microsoft financial results
💰 Microsoft’s Q3 earnings report is mostly positive for the company
😔 However, its Xbox division didn’t perform particularly well
😬 Hardware sales fell 30% and Xbox gaming revenue fell by 4%
📈 Thankfully, content and services grew by 3% thanks to Xbox Game Pass
The company said the 3% increase was “driven by better-than-expected monetization in third-party and first-party content, and growth in Xbox Game Pass”.
Microsoft will be hoping it can continue to attract new users to Xbox Game Pass and PC Game Pass, while retaining current subscribers. Big releases such as Starfield, Redfall and Forza Motorsport will certainly help, but it needs to generate some momentum.
Lackluster releases and disappointing announcements – like Redfall being 30fps on Xbox Series X at launch – may have derailed a lot of the goodwill Microsoft generates. The shadow drop release of Hi-Fi Rush was a highlight of 2023, but it’s been rather quiet since then.
A quick glance at our PS5 games 2023 list shows Sony has games like Marvel’s Spider-Man 2 and Final Fantasy 16 on the way, Microsoft needs to bring its best to stop the narrative that PlayStation 5 is the number one place to play.
If you’ve yet to subscribe to Game Pass, you can save with our Xbox Game Pass Ultimate 12 month discount code.
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