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Microsoft reports a 13% drop in Xbox gaming revenue; but Game Pass subscriptions reach “new highs”
A recent report by Microsoft states that Xbox gaming revenue has declined by 13% during the recent quarter. Aside from that, new highs for Xbox game pass subscriptions have been recorded.
Microsoft has reported a 13% drop in Xbox gaming revenue for the most recent quarter. The latest earnings report shows an overall decrease in income. Console revenue is down to 13%, and content and services revenue is down to 12%. Other than that, Xbox has reportedly recorded a hike in the monthly active users for the quarter ending in December 2022.
Xbox gaming revenue records a 13% decline
Xbox also reported a 12% decrease in revenue from Xbox content and services along with a 13% fall in gaming revenue. As per the report by Microsoft, a 13% decrease in Xbox hardware revenue is also recorded in the quarter ending on December 31, 2022.
Microsoft has also reported an overall drop in income for Xbox. This comparison is with a ‘strong prior year’, as stated by the tech giant. Further, the company points out the “declines in first-party content and lower monetization in third-party content” for the decline.
This decline in the overall revenue points to the lower pricing of the Xbox during the holiday season, along with an overall drop in the overall console sales.
Microsoft also announced that it would be laying off 10,000 employees from the company a few days back.
Xbox monthly active users reach 120 million
Despite a decline in overall revenue, Xbox managed to achieve 120 million monthly active users during the December 2022 quarter.
CEO of Microsoft, Satya Nadella also stated, “In gaming, we continue to pursue our ambition to give players more choice to play great games wherever, whenever, and however they want. Further, he added, “We saw new highs for Game Pass subscriptions, game streaming hours, and monthly active devices, and monthly active users surpass a record 120 million during the quarter”.
Nadella also discussed the partnership with Riot Games, from which the company’s games will be available on Xbox Game Pass.
The company’s lead communications manager Frank X. Shaw wrote in a tweet, “We saw new highs for Game Pass subscriptions, game streaming hours, and monthly active devices”.