Microsoft has revealed that Xbox gaming revenue has fallen by 13% year-on-year. However, is it really as bad as it seems?
As reported by TechRaptor, Microsoft’s gaming revenue was down for its current financial year’s second quarter, ending December 31st, 2022. That number was $4.758 million year-on-year compared to $5.442 million in 2021.
Xbox gaming revenue has fallen across the board
What’s more, as a result of the success of Microsoft’s subscription service, Xbox Game Pass, first-party and third-party content revenue has also declined. Furthermore, Xbox hardware revenue has also fallen by 13% year-on-year.
However, on Twitter, lead communications for Microsoft, Frank Shaw claimed that Xbox Game Pass set “new highs” for the subscription service.
Xbox Game Pass proves to be a success
“We saw new highs for Game Pass subscriptions, game streaming hours, and monthly active devices,” he tweeted. “And monthly active users surpassed a record 120 million during the quarter.”
It’s worth keeping in mind that TechRaptor made the point of Microsoft not counting a fiscal year from April to March, like other companies. Moreover, Microsoft’s fiscal year is from July to June, with October to December being its Q2.
Will 2023 be a great year for Xbox?
Even by Microsoft’s own admission, Xbox has been lacking in the exclusive department where Sony has been excelling. However, with the likes of Redfall, Starfield, and Forza Motorsport arriving in 2023 and beyond, this year should be a great time for Xbox fans.
Practically a year to the day when Microsoft made the first steps to acquire Activision Blizzard, the company cut the losses of 10,000 employees. The job losses were said to have a direct impact on the Xbox gaming departments including Bethesda.
Finally, do you believe Microsoft should be worried about the decline of its Xbox gaming revenue or will it claw it back in 2023? Let us know across our social media channels.
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Featured Image Credit: Microsoft/Source: TechRaptor