Microsoft’s Latest Earnings Report Shows A New Xbox Record Set, But Not Such Good News Elsewhere

Microsoft has released its lat­est earn­ings report, show­ing mixed results for the Xbox divi­sion. Its total gam­ing rev­enue fell, but the month­ly active users for Xbox reached a new third-quar­ter record.

Xbox’s gam­ing rev­enue dropped 4% across the board, with hard­ware sales being struck par­tic­u­lar­ly hard–decreasing by a whop­ping 30%. Microsoft said the down­turn in hard­ware sales was attrib­uted in part to a com­par­i­son with Q3 2022, which Microsoft said ben­e­fit­ed from “increased con­sole supply.”

With Xbox’s back in stock every­where, sales are slow­ing. How­ev­er, Xbox’s con­tent and rev­enue ser­vices increased by a mar­gin­al 3% dur­ing the quar­ter, thanks to growth in Xbox Game Pass sub­scrip­tions. Microsoft did not share sub­scriber num­bers in this report, and has­n’t since they hit 25 mil­lion mem­bers back in Jan­u­ary 2022.

Microsoft CEO Satya Nadel­la said Microsoft achieved third-quar­ter records for month­ly active users and month­ly active devices for Xbox, accord­ing to The Verge. Of course, Microsoft is a mas­sive tech com­pa­ny with var­i­ous busi­ness divi­sions out­side of Xbox. In total, Microsoft brought in $52.9 bil­lion in rev­enue, with a prof­it of $18.3 billion.

A short 12 hours after Microsoft announced this earn­ings report, the UK’s Com­pe­ti­tion & Mar­kets Author­i­ty announced it’s block­age of the Microsoft/Activision Bliz­zard deal.