Xbox Hardware Revenue Dropped 13 Percent in Q4 Fiscal Year 2023

Xbox content and services (like Game Pass) revenue is up by five percent, but revenue from gaming only rose by one percent.

Posted By | On 26th, Jul. 2023

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Microsoft’s financial results for Q4 of the 2023 fiscal year are available, and the company has reported $56.2 billion in revenue, an eight percent increase. Net income is also up by 20 percent at $20.1 billion.

On the Xbox side, console hardware revenue fell by 13 percent. Revenue from Xbox content and services like Game Pass is up five percent, though Microsoft expected to hit low-to-mid-teens in the category. Gaming revenue as a whole is only up by one percent.

In an earnings call (via The Verge), CFO Amy Hood cited a “weakness in first-party and third-party content performance” as a reason for the current figures. Interestingly, though hours played on Game Pass were up by 22 percent per Microsoft CEO Satya Nadella, they didn’t provide updated subscriber numbers. Then again, it hasn’t done so since announcing 25 million subscribers in January 2022.

Hopefully, with releases like Starfield and Forza Motorsport launching this fiscal year, Microsoft will have a reversal in fortunes. Stay tuned in the meantime.


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