February 7, 2023

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Xbox division revenue drops due to delivery issues, revenue reduction – IT Pro – News

Microsoft reported more revenue and profit in the second quarter, but the numbers for Xbox hardware and services slipped. This is partly due to delivery issues and a drop in liquefaction In all games.

Total revenue for the game was down seven percent from the same period last year, or a decrease of $259 million. According to Microsoft This is due to declining Xbox content and services, as well as declining Xbox sales.

Xbox content and services revenue decreased 6%. Microsoft credits the latter with fewer and fewer hours of gameplay liquefaction on private Xbox titles as well as games from other publishers.

Xbox sales fell 11 percent. The company says that this is partly a logical consequence of the Xbox Series consoles that came out about two years ago, which posted good numbers at the time. Delivery problems during this period also still play a role, as a result of which the path to the top has not yet been found. Microsoft says demand remains high.

The disappointing result in the Xbox section cannot be fully compensated by Xbox Game Pass subscribers. However, there was a growth in sales and therefore an increase in the number of subscribers, although Microsoft does not provide exact numbers for the current number of subscribers. In January this number was still at 25 million subscribers and in January 2021 there were 18 million subscribers.

Microsoft’s PC market did not help either: the shutdown of ongoing production in China in May and the “market slump in June” negatively affected Windows OEM revenue of more than $300 million.

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The PC market is currently experiencing a significant decline, but Microsoft Surface revenue has increased by ten percent. Microsoft didn’t make any major new introductions to Surface products in the quarter and believes the increase is mainly due to Surface’s rise in the commercial space.

Microsoft ended the quarter with total revenue of $51.9 billion, up 12 percent from the previous year. Net profit was $16.7 billion, an increase of 2%.