Microsoft’s Xbox sales fell 13% and gaming system content and services revenue fell 12%, the company said on Tuesday as part of its quarterly earnings report for the three months ending Dec. 31. Announced.
Total gaming revenue decreased 13% year-over-year.
In a presentation to analysts, the company said the decline in Xbox content and services revenue was due to year-over-year growth compared to a “strong year-over-year,” lower first-party content and third-party content revenue. He said it was due to a decline in The decline in revenue was partially offset by growth in subscribers to Xbox Game Pass, a subscription service that allows users to access Xbox games on their console, PC, and mobile devices.
Gaming console hardware revenue also declined during the quarter due to lower prices during the holiday season and an overall decline in the total number of devices sold.
Microsoft reported earnings after announcing massive layoffs that affected about 10,000 employees earlier this month. The layoffs are expected to be completed by the third quarter of this year, following similar layoffs at other tech companies such as Amazon and Meta.
The tech company, led by CEO Satya Nadella, is also facing regulatory hurdles in its $68.7 billion acquisition of gaming company Activision Blizzard. In December, the Federal Trade Commission sued to block the sale over antitrust concerns.
In his prepared remarks, Nadella did not mention the ongoing legal battle, except to mention that the company is looking to close a deal this fiscal year.
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