Xbox Revenue Increases Courtesy of Activision, but Hardware Sales Continue to Slip

Xbox Series X/S hardware sales have been consistently on the decline for a while now, and it looks like that continued to be the case in the quarter ending March 31 as well, as per Microsoft’s recently released quarterly fiscal report.

According to Microsoft, revenue for Xbox content and services saw a significant increase, climbing by 62 percent year-on-year, with the company attributing 61 points of net impact to Activision Blizzard.

In particular, titles like Call of Duty: Modern Wafare 3 and Diablo 4 – which launched on Game Pass in March – were significant drivers in revenue for the company. Additionally, according to Microsoft CEO Satya Nadella, strong performances for first-party titles on rival platforms also contributed to the company’s growing content revenue.

However, looking at the hardware side of things, Microsoft says revenue fell by 31 percent year-on-year.

Overall gaming revenue, however, is up by 51 percent, being driven in large part by 55 points of net impact by Activision Blizzard.