Summary
Xboxparent Microsoft has shared that the console giant experienced another downward trend in hardware sales for Q1 FY25, continuing its woes from the previous quarter. On the software and services front though,Xboxemerged as stronger compared to the same period last year.
For the past several years, Xbox console sales have lagged behind those of rivals PlayStation and Nintendo by a significant margin. In July, when Microsoft revealed its FY24 financial report, Xbox hardware revenue was spiraling downwards at the rate of 42% year-on-year for Q4. The latest results show that, although the decline hasn’t stopped, the speed at which it was happening before has been slowed down.
In its Q1 FY25 earnings report,Microsoftannounced some bittersweet stats for Xbox. While the hardware revenue in the first quarter went down by 29% year-on-year, Xbox’s content and services business shot up by 61% year-on-year during the same period. Interestingly, the Xbox parent shared that 53 points of net impact here were contributed solely by theActivision deal. On the whole, Microsoft’s gaming business underwent a 43% revenue growth in the first quarter, with 43 points of net impact coming from the Activision takeover again.
Xbox Hardware Sales Continue to Dwindle, While Xbox Game Pass Business Prospers
Xbox Series X
Microsoft’s ninth-generation console, the Xbox Series X is a powerful machine that can support 4K resolution and 60 fps, depending on the game. Released alongside the Xbox Series S, the Series X has a Custom AMD Zen 2 CPU, a Custom RDNA 2 GPU, and 16 GB of RAM.
