Microsoft have announced their overall gaming revenue decreased 21 percent year-over-year, while Xbox content and services revenue has also decreased by 11 percent. It’s not all doom and gloom though, as “Xbox Game Pass subscribers more than doubled this quarter,” according to Microsoft CEO Satya Nadella.
Xbox One hardware revenue did see a drop of 43 percent for the quarter ending December 31, 2019. The drop in revenue was due to the lower price of the console, as well as a drop in sales.
Xbox One hardware and software sales are expected to continue to drop throughout 2020 as gamers are waiting for the launch of the next generation of consoles at the end of 2020.
Summary for Microsoft Gaming (Xbox) segment:
– Hardware continues to decline significantly as XB1 reaches end of lifecycle.
– Full Game Sales and add on content sales declined due to tough comp last year (RDR2/Fortnite).
– Subscriptions spending (Game Pass/XBLG) is up. pic.twitter.com/4sa2UVsR78
— Daniel Ahmad (@ZhugeEX) January 29, 2020