Microsoft Reports Drop In Xbox Sales, Overall Gaming Revenue

Microsoft has launched its latest earnings report for the quarter ending December 31, lower than per week after it introduced it will be laying off 10,000 people. The tech large reported an total drop in revenue, in addition to a 13% lower in gaming income.

Each {hardware} and content material gross sales lagged for Xbox in comparison with the identical interval the earlier 12 months, with console income down 13% and content material and providers down 12%. Microsoft factors out that this comparability is with a “robust prior 12 months,” pointing to “declines in first-party content material and decrease monetization in third-party content material” for the drop. This was partially offset by Xbox Sport Move’s continued progress, Microsoft provides.

Microsoft’s newest consoles, the Xbox Collection X and Collection S launched in 2020 with demand initially outstripping demand. In the newest monetary quarter, income from console gross sales dropped 13%, with Microsoft pointing to decrease pricing over the vacation interval, in addition to an total drop within the variety of consoles bought.

The report comes after a serious spherical of layoffs involving 10,000 workers throughout Microsoft’s numerous divisions, and makes observe of $800 million in severance prices regarding this motion. Mixed with different prices associated to the downsizing, the layoffs price Microsoft an estimated $1.2 billion.

Microsoft continues to be looking to acquire gaming company Activision-Blizzard in a deal value $68.7 billion, regardless of dealing with regulatory hurdles and antitrust issues.

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