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Microsoft Reports $1.7 Billion Drop In Xbox Revenue For The Year
Kotaku • • technology
Key Points:
- Microsoft reported a significant overall profit increase last quarter, but its Xbox division experienced a double-digit year-over-year revenue decline, with a 10% drop in content and services and a 13% drop in hardware sales.
- For the entire fiscal year, Xbox revenue fell by $1.7 billion (7%), driven by a 5% decrease in content and services and a 29% decline in hardware sales due to lower console volumes.
- The poor financial performance has led to approximately 1,600 planned layoffs within Xbox over the next year and a strategic shift under new CEO Asha Sharma, focusing on major franchises like The Elder Scrolls and Fallout while cutting smaller studios.
- The challenges come after a difficult year for Call of Duty: Black Ops 6 and follow Microsoft's $70 billion acquisition of Activision Blizzard in 2023, which expanded its publishing operations beyond Xbox’s first-party studios.
