Xbox Records Revenue Drop in Every Department – Hardware Takes 33% Hit

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Another Abysmal Earnings Report For Xbox!

Story Highlight
  • Microsoft has released its latest earnings report, and things seem bad for Xbox.
  • The company has recorded a drop in revenue in every major department.
  • Hardware revenue dropped by 33%, Gaming by 7%, and content by 5%.

It is no secret that Xbox hasn’t been doing too well for the last few years. The last few years have been especially bad as the company, under Phil Spencer’s leadership, completely gave up on hardware, and their games didn’t do too well either. 

Xbox just dropped its annual earnings report, and it doesn’t look good for the gaming giants at all. The company has recorded a 33% drop in hardware revenue; additionally, all its departments have recorded revenue declines. 

Why it matters: Xbox recently marked a huge shakeup in leadership that saw Asha Sharma take over as the CEO. However, that doesn’t take away from the fact that the last year has been mostly abysmal for the company. 

Xbox CEOs Phil Spencer and Asha Sharma
Xbox reports yet another bad performance in the new earnings call

According to Microsoft’s latest earnings call, Xbox hardware declined by 33%, while gaming revenue and content and services revenue went down by 7% and 5%, respectively, compared to last quarter, when it wasn’t doing well already. 

The only thing that yet again saw an increase was the Cloud revenue, as the company continues to focus on that department. However, despite another poor year, the future is sounding somewhat promising. 

Xbox Series S|X
Hardware revenue saw the biggest decline

Fans claim that Asha is already doing a better job as the CEO. Additionally, she has also dropped Game Pass prices and is focusing on hardware again. Moreover, she has also hinted at the return of exclusivity. 

What are your thoughts on Xbox recording revenue drops in every department? Let us know your opinions in the comments or join the discussion at the official Tech4Gamers Forum.

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