Microsoft’s latest earnings report has revealed mixed results for the Xbox division, with a drop in total gaming revenue by 4% and hardware sales declining by 30%. The latter has been attributed to the high comparison to Q3 in 2022, with the downturn following the increased console supply. Despite the negative impact on revenue, Xbox has set a new monthly active user record and monthly active devices record in Q3 2023.
The increase in Xbox Game Pass subscribers continues to boost Xbox content and services revenue as it jumped by 3% during the quarter, while hardware sales have slumped due to increased supply.
While the gaming revenue is falling, Microsoft is not too concerned and is expecting it to grow in the mid to high-single digits for the next quarter. Xbox content and services are expected to continue to grow as well. However, there have been no updates on the number of subscribers since January 2022, where Microsoft announced 25 million members.
In other news, Microsoft’s proposed deal to buy Activision Blizzard has recently been rejected by the UK’s Competition & Markets Authority.