Microsoft has released its latest earnings report, and it showed a mixed bag of results for the Xbox division. Total gaming revenue fell–including a big 30% drop for hardware specifically–but monthly active users for Xbox reached a new third-quarter record.
Gaming revenue across the board at Xbox dropped by 4%, Microsoft said, while hardware sales slipped 30%. Microsoft said the downturn in hardware sales was attributed in part to a tough comparison to Q3 2022, which Microsoft said benefitted from “increased console supply.” Now that Xbox consoles are back in stock everywhere, it seems sales are slowing.
Xbox content and services revenue jumped by 3% during the quarter thanks to Xbox Game Pass subscriptions continuing to grow. However, Microsoft did not share a new subscriber number. In fact, it’s been more than a year since Microsoft announced 25 million members in January 2022.