The wave of layoffs recently announced at Microsoft was indicative of the maker’s sluggish results in the second quarter of the current fiscal year. The company’s latest financial report was released overnight, and our eyes fell primarily on the Xbox division when we saw that Microsoft’s gaming division is also showing, unsurprisingly, numbers on the decline.
There is a lack of big releases
Now is not the time for champagne to Phil Spencer and his team, but today’s results should surprise no one, least of all the first stakeholders. Console revenue fell 13% while services sales fell 12%, which Microsoft justifies with a particularly strong last year that saw net gains (particularly with the release of Halo Infinite and Forza). Horizon 5). The Verge reports that overall, the Xbox division’s revenue is down 13% year-over-year. This is also attributed to the lack of major releases in 2022, and Microsoft expects the numbers to continue to decline in the next quarter.
However, Microsoft claims that Xbox Game Pass continues to be popular and is gaining momentum. If the company does not provide new numbers (which last year were around 25 million), it claims that the number of registrations on the service continues to grow, while it claims to have set a record with almost 120 million players and active players taking into account its entire ecosystem.
Therefore, Xbox and Bethesda Softworks Developer_Direct will be looking to show that Xbox can count on strong games later this year to change those results.