The Daily Populous Thursday January 30th, 2025 morning edition
Authored by techcrawlr.com and submitted by WorriedAd870

Microsoft’s gaming business has taken a dip, with revenue dropping 7% in its second fiscal quarter. Over the three-month period ending December 31, 2024, the division pulled in $6.6 billion, which is $530 million less than the same time last year.

One big reason for the drop? Xbox hardware sales fell by 29%. Fewer consoles were sold, which dragged down earnings. But not everything was in decline—Xbox content and services revenue went up by 2%, mainly thanks to Game Pass continuing to grow.

This quarter is also the first time Microsoft can compare year-over-year results since closing its $75.4 billion acquisition of Activision Blizzard in October 2023. That deal brought massive franchises like Call of Duty, World of Warcraft, Diablo, and Overwatch under Microsoft’s umbrella. After the buyout, the gaming division saw a big jump in revenue for the next four quarters. Now, with the dust settled, we’re seeing how things actually stack up.

Microsoft’s gaming sales were still strong in December, with $465 million spent on its games that month alone. This made it the top publisher in the world during that time. But with hardware sales slumping, it’s clear that Game Pass and software sales are doing most of the heavy lifting.

Microsoft is set to hold its Q2 earnings call at 2:30 PM PT / 5:30 PM ET / 10:30 PM GMT. CEO Satya Nadella may shed more light on what’s happening with Xbox, and the company will share what’s next for Q3.

da_loogie on January 30th, 2025 at 00:46 UTC »

As a life long Xbox guy, gpass is the only reason to get an Xbox. Their exclusives have been very lacking lately with Halo and Gears of War, while PS has fantastic ones like God of War, Ghost of Tsushima, Spider-Man, etc. Plus you PC players get best of both worlds most of the time.

Volt7ron on January 29th, 2025 at 23:44 UTC »

So gamepass is up but hardware sales is bringing down revenue? I really don’t want Xbox to leave the console market but damn I can’t see them continuing when they’re taking continuous hits financially in hardware sales

Gothamite40k on January 29th, 2025 at 23:44 UTC »

Phil Spencer's autobiography should be called 'How To Kill A Console'.