Xbox Predicts Another Drop In Console Hardware Revenue Next Quarter

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Abiyan

At HI Digital I test and write about different hardware configurations to show other PC users what they can expect from their build. My end goal is to educate the masses to make the right decision when they are looking for new PC parts to buy

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Xbox games are selling better than before, and Microsoft is doing much better in the gaming industry after the recent acquisition of Activision Blizzard. Microsoft has confirmed these results via its Q3 FY2024 financial earnings results.

However, the company’s gaming hardware department was a weak point. Revenue declined by 31% this quarter, and Xbox is set to repeat this pattern in Q4, according to Microsoft.

Why it matters: Xbox is already in last place regarding console hardware, and these results could push it further below the competition.

Microsoft’s Q3 results point to a grim fate for Xbox hardware. The gaming giant attributed this decline to a lower volume of consoles sold despite major console exclusives like Palworld earlier this year.

CFO Amy Hood said they expect hardware revenue to decline again next quarter. Similarly, Microsoft’s Surface department is looking at lower revenue figures from hardware in Q4 of FY2024.

Fortunately for Xbox, the overall gaming division will continue to exhibit growth. Thanks to Activision Blizzard, the CFO predicted another 40-50% uplift in revenue.

Elsewhere, Microsoft CEO Satya Nadella confirmed his commitment to releasing more games across various platforms. He also acknowledged the large number of Xbox best-sellers on PlayStation recently.

While Game Pass stood at 34 million users until recently, Satya Nadella further stated that the service has now crossed 35 million subscribers.

It should be noted that these results wouldn’t have been possible without Activision Blizzard since the publisher became the largest source of revenue.

However, console sales are still rapidly declining. At this rate, the Xbox Series S|X might end up selling fewer units than the Xbox One, which is often considered Microsoft’s worst generation to date.

If leaks are to be believed, the gaming giant plans to launch its next console earlier than the competition to tackle the problem, but it remains to be seen if this will solve Xbox’s biggest problems.

Abiyan

[How-To Guides Expert]

Laiba, our tech guru at HI Digital, simplifies and crafts How-To Guides with a Google IT Support Certificate. Beyond tech, she captures the city’s aesthetics through her lens. Join her journey where tech meets creativity!

Get In Touch: Laiba@hidgt.com