Microsoft’s quarterly earnings call reveals Xbox gaming revenue is up slightly as console sales decline

Robert Collins

Xbox Series X And S Side By Side Custom

Microsoft’s FY23 Q4 earnings data is in, and it reveals some pretty interesting dynamics where the company’s Xbox business is concerned.

This latest earnings report revealed that Xbox console sales dropped 13% over the quarter. That’s compared to a eyebrow-raising 30% decline in Xbox hardware sales over the previous quarter before that. Microsoft cited supply issues during that period as contributing to the decline.

However, it is not all gloomy news for the Xbox brand. Overall gaming revenue actually increased by 1% to $36 million. This can be attributed to Xbox content and services revenue, which saw a 5% increase over the quarter. In fact, Xbox saw a new Q4 record for monthly active Game Pass engagement.

We set new fourth quarter highs for monthly active users, driven by strength off-console, as well as monthly active devices. And we saw record fourth quarter engagement across Game Pass, with hours played up 22 percent year-over-year.”—Microsoft CEO Satya Nadella.

Overall it is a short-term improvement on the Xbox front, although the Xbox Series X|S is apparently struggling to bring in new adoptees relative to the competition (i.e. Sony and Nintendo). It’ll be interesting to see how and if the console’s fortunes change in the coming fiscal quarter with big releases like Starfield and Forza Motorsport coming out.

Via Pure Xbox