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Xbox Hardware Sales Plummet as Software and Services Flourish

Microsoft's focus shifts to expanding Game Pass and cloud gaming amid declining console revenue.

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Overview

  • Xbox hardware revenue dropped by 42% in the latest quarter compared to last year.
  • Overall gaming revenue increased by 44%, driven by a 61% rise in services and software sales.
  • The Activision Blizzard acquisition significantly boosted Microsoft's gaming portfolio and revenue.
  • Microsoft now has 500 million monthly active users across its gaming platforms.
  • Console redesigns are planned, but hardware sales are expected to continue declining.