Xbox Revenue Up 51% Year-on-Year But Console Sales Poor Again

Expert Verified By

Console Sales Revenue Down 31% Year-on-Year!

Story Highlight
  • Microsoft’s gaming revenue increased by over 50% YOY.
  • 55% of the growth came directly from Activision Blizzard.
  • Xbox hardware suffered in Q3 FY2024, with revenue declining by 31% YOY.

Microsoft’s Xbox division is finally beginning to show promising results after the recent Activision Blizzard merger. Last quarter, the gaming giant reported a nearly 50% boost in revenue due to the acquisition.

Similar results have been reported again, with Microsoft confirming a 51% year-on-year improvement in gaming revenue for Q3 FY2024. However, hardware figures are much worse.

Why it matters: Sony continues to sell millions of consoles each quarter, breaking past the 50 million barrier recently.

Xbox FY2024 Q3 Revenue
Gaming FY2024 Q3 Revenue via Microsoft

While these figures bode well for Xbox overall, its hardware division continues to struggle. It is no secret that Microsoft has been unable to ship many consoles this generation despite offering a budget Xbox Series S.

According to its earnings release, Xbox hardware revenue fell by a whopping 31% year-on-year. Last quarter, Microsoft reported a 3% growth year-on-year in this segment, which was already poor.

The rapid decline in hardware popularity could be concerning for Microsoft’s position as a console manufacturer in the market. Meanwhile, Activision Blizzard contributed around 55% of the growth to overall gaming revenue.

This also means that gaming revenue would have declined without the publisher’s contribution.

Xbox
The Future of Microsoft’s Consoles May Be At Risk

Microsoft reported a record-high Q3 for its gaming division in FY2024.

Despite the concerning state of console sales, the company has confirmed work on the next-generation systems already. This means that it does not intend to rely solely on its role as a game publisher.

However, with each new financial report, it is clear that game publishing is now Microsoft’s primary strength in the gaming industry.

Microsoft will certainly be happy with the results. While the state of console hardware is concerning, the Activision Blizzard merger certainly justifies itself.

Perhaps Xbox will even consider being more aggressive in the hardware market in an attempt to bring these figures up to par with the rest of its gaming division, thanks to the renewed energy after Activision Blizzard’s recent impact.

Was our article helpful? 👨‍💻

Thank you! Please share your positive feedback. 🔋

How could we improve this post? Please Help us. 😔

Gear Up For Latest News

Get exclusive gaming & tech news before it drops. Sign up today!

Join Our Community

Still having issues? Join the Tech4Gamers Forum for expert help and community support!

Latest News

Join Our Community

104,000FansLike
32,122FollowersFollow

Trending

Lost Soul Aside Will Finally Release On PC And PS5 On May 30th, 2025

Lost Soul Aside received a new gameplay and story trailer at the PlayStation State of Play and is finally releasing on 30th May.

Stellar Blade Officially Heading To PC In June 2025

Stellar Blade is on its way to PC with all new DLC costumes and boss battles. The game is arriving in June 2025.

Days Gone Remastered Announced; Releasing April 25

Sony has finally announced the rumored Days Gone Remastered during State of Play and it will be released on April 25, 2025.

Onimusha: Way of the Sword Receives Action-Packed Gameplay Premiere

Capcom has shown the first gameplay for Onimusha: Way of the Sword, highlighting exciting melee combat and gorgeous visuals.

Borderlands 4 Stuns In New Trailer; Releases September 23rd 2025

A new gameplay trailer for Borderlands 4 was revealed at the PlayStation State of Play, with a release date of September 23rd, 2025.