Microsoft Q3 2023: Windows, devices, and Xbox down again

[username and 23 others]

TheVerge

The devices revenue doesn’t cover Microsoft’s Xbox efforts, though. That’s separated out into Xbox hardware revenue, which has dropped by 30 percent this quarter along with a slight increase of 3 percent in Xbox content and services revenue thanks to Xbox Game Pass growth. Overall, gaming revenue has declined 4 percent.

This works out to be the lowest quarter of Xbox hardware revenue since Microsoft launched its Xbox Series X / S consoles in 2020. The drop in Xbox hardware revenue isn’t particularly surprising given the lack of first-party games throughout 2022 to drive sales.

Microsoft still isn’t providing an update on Xbox Game Pass subscriber numbers. Microsoft said Xbox Game Pass had grown to 25 million subscribers in January 2022, but we haven’t had an update for well over a year now. Microsoft Gaming CEO Phil Spencer revealed in October that Xbox Game Pass growth had stalled on the console side of the service, with Microsoft making a bigger push toward gains for PC Game Pass instead.

Bold all mine.

Not revealing an update on GP... not a good sign. The execs do seem cautiously optimistic for the future with even double digit growth expectations... Maybe Starfield and The Greatest Aquisition (tm) will "save" the gaming division?

 

[AlphaJohn]

FY23 Q4 - Press Releases - Investor Relations - Microsoft

 

[username and 23 others]

I dunno how anyone can spin this Q's result as positive - but I am no financial expert.

Here's another reason why I'm not a Big-Chief-Carrying-Bloody-War-Ax at a company: Stop XBox hardware. Licence out XBox name to 3rd party HW manufacturers [let them manufacture "XBox Approved" handhelds, PCs, Tablets] and focus on "GamePass Everywhere".

 

[AlphaJohn]

Licence out XBox name to 3rd party HW manufacturers [let them manufacture "XBox Approved" handhelds, PCs, Tablets] and focus on "GamePass Everywhere".

That is called a PC