Xbox Console revenue fell off a cliff this year
Microsoft’s latest quarterly earnings report on September 30 revealed that revenue from Xbox hardware fell 30 percent year over year.
Worse, by the way, this drop in revenue doesn’t reflect any dip in sales caused by the $20 to $70 price tag. (Oh, and Microsoft raised the price of its Game Pass Ultimate subscription from $20 to $30 in October.)
Fortunately, revenue from Xbox content and services, specifically, remained unchanged from the same period last year. That’s part of Game Pass Concent for Microsoft’s Mission business.
When Microsoft began cutting its workforce around the world earlier this year, Xbox was hit hard, and the company canceled games, such as the modern reimagining of It’s perfect blackand shut down the Xbox studio it’s working on.
More broadly, Microsoft’s revenue is up, with CEO Satya Nadella posting a few highlights about the company’s earnings from X, which is focused on AI. He said the company will increase its AI capacity by 80 percent this year.
– Matt Smith
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