Microsoft is down but for Xbox the numbers are record-breaking

Microsoft is down, but for Xbox, the numbers are record-breaking

In the past few hours, Microsoft has released data relating to the last quarter of the fiscal year ended June 30, marking a slowdown in several key factors of its business – including Xbox , which however has made record numbers compared to past.

The Redmond giant’s revenue was $ 51.9 billion (+ 12% yoy), with net income of $ 16.7 billion (“only” + 2% yoy). A significant slowdown occurred above all in the PC sector, thanks to the delicate geopolitical situation of these years of great uncertainty – with some stumbling blocks for Windows and what Microsoft defines as “a deterioration of the PC market” (via The Verge ) affected by closures and difficulties in production chains.

It is much better for the gaming division , despite the decreasing numbers. As highlighted by VGC , in this case we speak of a decrease of 7% compared to the same period last year. The Xbox hardware section had a -11%, that relating to revenue from services a -6% due to “fewer hours of engagement and lower monetization in first-party and third-party content” , thanks to the increasing popularity of Xbox Game Pass .

The figure that speaks of a -11% in terms of hardware is however linked to the fact that the previous numbers referred to a generation that has just begun and that, therefore, was at its peak of sales – despite the inventory problems that we now know well . As explained by Kendra Goodenough, director of investor relations, to The Verge 

“The decline you see in terms of Xbox hardware is partly a reflection of the fact that about two years we had that launch. Considering the inventory issues, [the launch period] has pretty much extended.

We are still seeing strong demand , but falling from those peaks we have seen in the last couple of years which represented the launch of consoles ».

On the data there was also the comment of the CEO Satya Nadella , who highlighted the important numbers of the console sector of Microsoft, noting that these are sales higher than any previous generation of Xbox . The idea of ​​Series X and Series S (you can find it on Amazon , at least you), in short, is being rewarded in a decisive way by the public.

As stated by Nadella and reported by VGC :

“We have sold more consoles than in any previous generation and have been the market leader in North America for three quarters in a row among next-generation consoles.

Through Xbox Cloud Gaming, we are bringing games to new platforms – now you can stream to Samsung smart TVs .

We also have a partnership with Epic Games to make Fortnite available for free via browser. Over four million people have streamed the game to date, including one million people new to our ecosystem. “

Nadella’s positive analysis is actually reflected in the numbers: according to the independent analyst known as DomsPlaying , the $ 3.45 billion in sales recorded by Xbox is the second best quarter ever .

Microsoft FY 2022 Q4:

Assuming ~ $ 3.45B in quarterly gaming sales, annual revenue from Xbox reached $ 16.22B.

While that’s down a bit on a rolling basis, it’s the highest fiscal year sales ever for Xbox.

I estimate 77% from Content & Services.

See below annual chart for more!

– Sun (@DomsPlaying) July 26, 2022

Undoubtedly, the trend in North America to which Nadella refers cannot yet be read under a normal lens, because both Xbox Series X and PlayStation 5 continue to hide on the market – in order to evaluate how their performance would be in a pre-existing condition. -COVID.

However, the public response to Xbox’s proposals is certainly strong and the strategy of the Redmond giant , which with Xbox Game Pass Ultimate and its cloud wants to bring games and its ecosystem literally everywhere, instead of pushing you to buy a console. to pull you into its ecosystem, it is paying off.

Leave a Comment