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XBOX REVENUE PLUMMETS AS PRICES RISE – A CLOSER LOOK AT MICROSOFT’S GAMING STRUGGLES
Microsoft recently released its earnings report for the quarter ending September 30, revealing some alarming figures for its gaming division. The revenue generated from Xbox hardware saw a staggering 30% decline compared to the previous year. Notably, this drop in revenue doesn’t yet reflect the impact of the recent price hike, which raised costs from $20 to $70, implemented just after the report period.
Despite these troubling numbers for hardware sales, Microsoft has some silver linings. Revenue from Xbox content and services, largely driven by the Game Pass subscription, remained stable compared to the previous year, serving as a crucial asset in the company’s gaming strategy.
The situation at Xbox has been further complicated by significant layoffs earlier in the year, which resulted in the cancellation of several upcoming games and the closure of the studio responsible for a reboot of Perfect Dark.
Looking at the broader picture, Microsoft’s overall revenue is on the rise, with CEO Satya Nadella highlighting a planned 80% increase in AI capacity for the year, indicating a shift in focus towards more profitable areas than hardware sales.
In other gaming news, Forza Horizon 6 is set to launch on Xbox and PC on May 19, and discussions are intensifying around upcoming events, including the highly anticipated Samsung Galaxy Unpacked 2026.
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