Xbox hardware sales down 30% during Q3 FY23
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Microsoft just released its earnings for the three months ended March 31, 2023 (Q3 FY23), showing a steep decline in hardware sales and a slight dip in total gaming revenues.
Here's what you need to know:
CEO Satya Nadella shared that revenue from gaming subscriptions reached nearly $1 billion within the quarter, with Game Pass extended to 40 new countries during that period.
He added that the firm has surpassed 500 million lifetime unique users across its first-party titles as well, and that the company has reached record numbers for a Q3 in terms of monthly active users when it comes to gaming.
CFO Amy Hood gave more details on the financial results within the gaming category, saying that the 4% decline in revenue was "ahead of expectations."
"Xbox hardware revenue declined 30% and 28% in constant currency on a high prior year comparable that benefited from increased console supply," she added.
It's worth noting that, in Europe, Xbox Series X and S console sales were down 10% during the first quarter of the calendar year 2023.
As for the slight increase in Xbox content and services revenue, Hood said it was driven by "better-than-expected monetization in third-party and first-party content and growth in Xbox Game Pass."
The 7% growth across the entire company was attributed to Microsoft Cloud in the context of the rise of AI (Microsoft Cloud revenue reached $28.5 billion and was up 22% year-on-year).
Looking ahead, Hood said she expected gaming to grow "in the mid- to high single digits" during Q4, adding: "We expect Xbox content services revenue growth in the low to mid-teens, driven by third-party and first-party content as well as
Read more on gamesindustry.biz
