Microsoft’s Latest Financial Report Shares Decrease In Revenue From Xbox Division

This past generation for the entirety of the Xbox platform has been quite a roller coaster for the newest iteration of gaming hardware, Xbox One. Although Microsoft implemented well-attended initiatives such as Xbox Play Anywhere, Xbox Game Pass, and the recent Project xCloud to accumulated more users to the overall ecosystem. However, this past year especially have shown to be otherwise according to the latest financial report for the fiscal year.

Reading the documentation provided shares that Microsoft is actually thriving in all categories in the global market, except for their gaming division, Xbox. The report discloses that a total 21 percent in revenue dipped this past year regarding the gaming specifically: software sales on a decrease due to competitive releases the past year. However, that is only half of the trouble that accumulated for Microsoft.

As the Xbox One approaches the end of its lifecycle, hardware sales are sill decreasing as well with an approximate 43 percent down in revenue. Accounting for strict competition from both PlayStation and Nintendo Switch, Microsoft continues to fall behind. Especially following the previous report in December 2019 as the Switch exceeds lifetime sales of the 2013 unit in less than three years.

Additionally, software and services also face a decrease in revenue by 11 percent: subscriptions illustrates to play a role in the outcome as full-game installs and downloadable content are in a decline as well. Despite the unflattering numbers surrounding software sales ultimately, Xbox Live Gold, and of course, Xbox Game Pass continues to perform well in this current financial climate. But due to the accessibility of the Netflix-esque service permitted, it does present a well-noted outcome on overall revenue.

Currently, Xbox Game Pass is only in beta for PC, but is expected to receive a full release in the coming future. Atop of computer users, mobile could also receive the monthly subscription service via Project xCloud when open to the public in the near future too. And as more players get more for their buck from the game streaming initiative, how much more will Microsoft be able to take from it?

Perhaps new techniques could be considered towards taken into effect with the upcoming launch of the Xbox Series line of hardware. What do you think should be done to reverse the dame currently inflicted on the Xbox brand?

Source: Microsoft