Microsoft reports Xbox revenues are sluggish in Q3

venturebeat.com:

Connect with top gaming leaders in Los Angeles at GamesBeat Summit 2023 this May 22-23. Register here.

Microsoft today released its financial earnings report for Q3 of fiscal year 2023. The report includes details about the fortunes of its specific departments, including its Windows and Xbox divisions. According this report, Xbox content and services revenues are up about 3%, but the hardware division has dropped by 30%. However, the company overall shows growth as other departments pick up the slack.

According to the financial earnings slides, Xbox hardware revenue is down 30% in this quarter, or 28% in constant currency. The slide reads this percentage is “on a prior year comparable that benefitted from increased console supply.” Xbox content and services revenue is up 3%, or 5% in constant currency, which the same slide notes is thanks to Xbox Game Pass. Gaming revenue overall declined 4%, 1% in constant currency.

Microsoft CEO Satya Nadella said during the earnings call that revenue from subscriptions reached nearly $1 billion in the quarter, and noted the expansion of PC Game Pass to 40 new countries. The company noted its exclusive games that arrive in Q4, including Redfall and Minecraft Legends.

Another weak spot for Microsoft was Windows hardware and OEM, which declined 30% and 28% respectively. This is apparently due in part to decline in demand on the PC market. While Xbox and Windows hardware have dropped off, the report shows that Microsoft’s cloud services and office products have helped make up for this lack. Overall, the company made $52.9 billion in revenue this quarter, a 7% growth.

GamesBeat's creed when covering the game industry is «where passion meets business.» What does this mean? We want to tell you