Xbox Gaming Revenue Down By 13% Amid Lack Of Big Releases

Microsoft reports drop In Xbox sales and overall gaming revenue after years of growth.

Story Highlights

  • Xbox has faced a year-over-year drop in gaming revenue, with a 13% decline from $5.44 billion to $4.76 billion.
  • Xbox content and services revenue overall was down 12%
  • Microsoft expects another year-on-year drop next quarter.

Less than a week after making the announcement that it will be laying off 10,000 employees, Microsoft has released its most recent earnings report for the quarter ending December 31. In addition to a 13% decline in gaming revenue, the tech giant reported a dip in overall revenue.

Microsoft’s gaming division finally appears to be slowing down a little after a few years of impressive gaming revenue increases thanks to sales of the Xbox Series X and S. Although a decline is to be expected, the absence of significant first-party game releases isn’t exactly making things better.

Xbox has experienced a year-over-year loss in gaming income for the first time in a while, with a 13% reduction from $5.44 billion to $4.76 billion. Additionally, it appears that revenue for Xbox Content & Services has decreased by 12%, which may be explained by an “increase in Xbox Game Pass subscriptions.

Xbox Series X
Xbox Series X

In addition, it was announced that Xbox had increased the number of Xbox Game Pass memberships, hours of active gaming, and monthly active devices, setting a new corporate record with 120 million monthly active users.

Microsoft CEO Satya Nadella said,

We saw new highs for Game Pass subscriptions, game streaming hours, and monthly active devices. And monthly active users surpassed a record 120 million during the quarter.”  

Overall, a decline in revenue is anticipated as a result of a combination of high demand for the scarcely available Series X and S consoles and the absence of significant game releases for them. Microsoft expects another year-on-year drop next quarter due to a similar situation with a strong prior-year comparable and fewer releases

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Shameer Sarfaraz is a Senior News Writer on eXputer who loves to keep up with the gaming and entertainment industries devoutly. He has a Bachelor's Degree in Computer Science and several years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.

Experience: 4+ Years || Education: Bachelor in Computer Science.

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