30% Decline in Xbox Revenue: Microsoft Reports Quarterly Results
Microsoft has reported a significant 30% drop in Xbox hardware revenue for the third quarter ending September 30. This occurred amidst global company cutbacks and substantial changes in the Xbox division.
In its quarterly report, Microsoft noted that the decline in console revenue was linked to the cancellation of several major projects, such as the reimagining of the game Perfect Dark and the long-awaited Everwild project by Rare studio. According to reports, these projects were put on hold due to staff reductions in the Xbox division, which was one of the hardest hit by this year’s optimization measures.
Price increases for Xbox consoles, aimed at offsetting losses, were implemented only on October 3rd and therefore did not affect this quarter’s financial outcomes. The increase will range from $20 to $70 depending on the model. Similarly, prices for the Game Pass Ultimate subscription rose from $20 to $30, with changes taking effect in October as well.
Meanwhile, Microsoft’s overall financial results remain positive. Despite challenges in the gaming segment, the company’s total revenue reached $77.7 billion, which is 17% more than the same period last year. Microsoft CEO Satya Nadella emphasized the company’s successes in the artificial intelligence sector, including plans to increase AI capabilities by 80% by the end of the year and to double data center expansion over the next two years.
Nadella also noted that strategic investments in AI are key to Microsoft’s future projects, as the technology is gaining increasing influence across various industries.
| Period | Xbox Console Revenue | Microsoft Total Revenue |
|---|---|---|
| Q3 2022 | – | $66.4 billion |
| Q3 2023 | -30% | $77.7 billion |
