The Xbox Sequence X and S will likely be 4 years previous this yr, and Microsoft’s newest earnings name has revealed that its latest era of consoles simply aren’t promoting like they used to. Whereas software program and repair gross sales have been robust, helped alongside by the huge Activision acquisition, {hardware} gross sales have seen a pointy decline.
In its This autumn earnings presentation for the 2024 fiscal yr, Microsoft famous that its gaming {hardware} gross sales have decreased considerably, with a 42% decline in comparison with the identical interval final yr. Regardless of this, the corporate’s general gaming income was up 44%, with a 61% enhance in content material and companies income that Microsoft says was “barely forward of expectations.” Each of those progress figures had been positively impacted by the Activision buy, Microsoft says.
The decision additionally means that third-party content material could not have carried out in addition to anticipated for Xbox in This autumn, with Microsoft noting that “stronger-than-expected efficiency in first-party content material was partially offset by third-party content material efficiency.”
Regardless of the sharp decline in {hardware} gross sales, the figures aren’t prone to come as a shock for Microsoft–in truth, its future outlook notes that “{hardware} income will once more decline year-over-year.” To offset this continued decline, Microsoft is seeking to its Activision buy to proceed to drive gross sales on the content material facet.
Whereas Microsoft seems to be to be focusing more and more on software program gross sales and Recreation Cross as the important thing to its gaming enterprise, with Activision solely the biggest of its latest writer acquisitions, the corporate has nonetheless reaffirmed its dedication to the {hardware} enterprise. Microsoft has a brand new digital-only Xbox Sequence X releasing in time for the vacations, and has additionally confirmed that it’s engaged on the subsequent era of Xbox consoles.