Xbox Hits New User Records, As Microsoft Reports Drop In Xbox Sales And Gaming Revenue

Thank goodness. With all the latest talk here, I was convinced MS was doomed...Doooomed I tellz ya. lol

Anyway, any thought on this SW?

Smoke and mirrors amright? :P

The Story.

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Xbox Hits New User Records, As Microsoft Reports Drop In Xbox Sales And Gaming Revenue

The company's latest earnings report shows an overall drop in income, with gaming revenue on the decline after years of growth.

By Eddie Makuch and Hayley Williams on January 25, 2023 at 5:24AM PST

Microsoft has released its latest earnings report for the quarter ending December 31, less than a week after it announced it would be laying off 10,000 people. The tech giant reported an overall drop in income, as well as a 13% decrease in gaming revenue.

Xbox hit a new MAU (monthly active users) record of 120 million for the latest period and Xbox Game Pass continued to grow, but that was the extent of the bright spots for Xbox during the quarter.

Both hardware and content sales lagged for Xbox compared to the same period the previous year, with console revenue down 13% and content and services down 12%. Microsoft points out that this comparison is with a "strong prior year," pointing to "declines in first-party content and lower monetization in third-party content" for the drop. This was partially offset by Xbox Game Pass's continued growth, Microsoft adds.

Microsoft's latest consoles, the Xbox Series X and Series S released in 2020 with demand initially outstripping demand. In the most recent financial quarter, revenue from console sales dropped 13%, with Microsoft pointing to lower pricing over the holiday period, as well as an overall drop in the number of consoles sold.

The report comes after a major round of layoffs involving 10,000 staff across Microsoft's various divisions, and makes note of $800 million in severance costs relating to this action. Combined with other costs related to the downsizing, the layoffs cost Microsoft an estimated $1.2 billion.

Microsoft is still looking to acquire gaming company Activision-Blizzard in a deal worth $68.7 billion, despite facing regulatory hurdles and antitrust concerns.

O wow, how them sad Sony fanboys gonna spin this.

Sounds like some pretty good stuff to me. 👍

Xbox hit a new MAU (monthly active users) record of 120 million

Minecraft logins

yeah people playing games, how preposterous.

@SecretPolice: this is amazing news. Xbox keeps on #winning.

Good for them.🤷🏽‍♂️

@kvallyx said:

I win

lol :P

Lol guess what ever makes Xbox fanboys sleep better at night

Sad metric used to mask how shitty Xbox is doing lmao

I can log in for one minute, does that count?

This is awesome news, because coming in 3rd gives me hope that 3rd place holders can be treated as equals to 1st place holders

Watch out! ALT ATTACK!

No kidding. There are a lot of "new" posters in here - and interestingly enough, they're all cows... hhmmm...

So you're bragging about "New User Records, As Microsoft Reports Drop In Xbox Sales And Gaming Revenue"?

I see some other xbox guys cosigning on trying to brag about this. WOW.

The irony of NOT understanding what this says about GP is earth shattering.

I never thought xbox fans to be all there, but I didn't think you guys were this out of touch.

Instead of blindly gloating THINK ABOUT WHAT THIS ACTUALLY MEANS:

*New RECORD users*

RESULTS =

Drop in xbox sales and gaming revenue!

Nvr mind lol xbox fans can't even recognize when they're bragging about something proves that this Gamepass model doesn't make money!

😂 The Alts are growing, which indicates there is a concern in the Sony faction.😎

looks like Microsoft is doing a great job expanding the Xbox brand..

mindshare is important and it clearly looks like PC gamers are giving Game Pass a try, Xbox cloud streaming is expanding via titles like Fortnite, and users on other platforms are playing Xbox IP like Minecraft..

since fanboys like to use podium references for everything, Xbox is likely #1 in active users by those numbers..

Microsoft just needs to lead the charge with some great first party content for the core base.. this year is looking pretty good in that regard..

Desperate irrelevant metrics to hopefully let the normies know that they haven't been buried by Sony

Shows that despite even on a slow year it still gets more active users and Game Pass subscribers and is hitting 120 million active users across devices.

Curious where Sony is with their quarterly report because last reported monthly active users was close to dropping under 100 million and they've been on a three year downward trend in that regard.

@kvallyx: what’s an alt attack

Nice

@kvallyx: Alts pretending to be ignorant is always funny.🤭

I know, right? Isn't it amazing? Rejoice Xbox brethren.

Who needs an alt for this place? Most people regurgitate whatever reality they want anyway. Most own up to nothing...

Poo alts, with no real life to speak of what else they got to do, right? lol :P

It's a statement they intentionally left without context. Xbox "Monthly Active Users" just meant people logging into Xbox account whether they on PC, Console or any devices. What is real is content revenue and hardware revenue is down double digits.

We seen the same with Sony they report monthly active users too.

Im surprised Xbox sold as well as it did at Christmas there was literally nothing first party to play.

Economical, inexpensive, XSS's sold are likely the reason why.

Turns out MS really did know what they were doing, who knew. lol :P

Yeah, Xbox games are available on PC, consoles, and many devices via the cloud.. 😐 the context is clear..

"revenue" is just a moving of the goal post.. console unit sales are about "install base"; not revenue.. and as these companies move beyond consoles, the best way to measure an install base is via the monthly active users..

and as it stands, for likely the first time ever, Xbox has a larger install base of active users than PlayStation..

Xbox games available everywhere, revenue in Xbox division going down. Highly related.

revenue is down in some quarters and up in other quarters.. this is nothing new and this applies to every major game company..

ultimately, according to Microsoft, the Xbox division is generating more revenue than ever before.. so to correct your statement:

Xbox games available everywhere, revenue in Xbox division higher than ever before.. Highly related.

Actually it's lowest since 2020.

@sakaixx: you mean the year where everyone was at home during Covid playing video games?..

Big surprise.. 🙄

Doesn't change the fact that Xbox still has 120 million active users versus the last count of 102 million on Playstation.. This entire exchange just proves my point of how the goal posts continue to move as Xbox continues to grow..

#tehrevenue