Microsoft's gaming revenue for the year fell by 21%
Microsoft summed up the results of the second fiscal quarter. Her gaming business is not well. Sales of both devices and software have sunk.
- Microsoft’s total revenue for the quarter was $36.8 billion. Net profit — $11.6 billion. Both indicators grew in annual terms, but specifically the video games segment once again showed a deterioration, writes Gamesindustry.biz .
- Gaming revenues for the quarter amounted to $3.3 billion, which is 21% less than in the same quarter of the last fiscal year. This is despite a twofold increase in Xbox Game Pass subscriptions.
- The drop in sales occurred on several fronts at once. Firstly, the revenue from sales of devices decreased by 43%. As Microsoft stated, this is normal considering the last holiday period for the current generation of consoles.
- Secondly, the Xbox division’s revenues sank by 11%. They reached $295 million. Microsoft explains this with lower revenue from games compared to the second financial quarter of last year. For example, during that period, Fortnite had record revenues. At the same time, a strong release of Red Dead Redemption 2 took place, according to the NPD Group.
- At the same time, there are more Xbox Live subscribers. But it is unclear how much. Since the beginning of the financial year, Microsoft has not provided data on MAU — it only talks about growth. In the current quarter, according to her, the indicator has increased record-breaking. Note that at the end of the last fiscal year, the monthly audience of Xbox Live was 65 million.
- Also, operating expenses for the PC segment decreased by 5% ($150 million). This is due to the redistribution of resources. Investments in games, however, have increased. How much is not reported.
Now Microsoft predicts a decline in gaming revenue for the third quarter. The drop will be double-digit, as the management promises. And it also reminds that on the eve of the launch of the Xbox Series X, a decrease in gaming revenue is quite expected.
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