Xbox console sales plummet as overall revenue skyrockets

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Microsoft's Q3 financial report is in, and there are some less-than-ideal results for the Xbox brand. According to the document, Xbox hardware sales tanked by a massive 31% compared to last year's sales, which were already down by 30% in the previous Q3 report, meaning total Xbox Series X|S sales have more than halved since 2022. While there aren't any exact numbers reported by Microsoft in terms of total Xbox Series X|S units sold, some gamers have sleuthed out that according to publisher Take-Two's own earnings report, 77 million Gen 9 video game consoles have been sold, and Sony themselves have stated the PlayStation 5 has surpassed 50 million systems sold. That puts Xbox's current generation hardware at about 25 million units sold, putting it ahead of the Nintendo GameCube, but behind the Sega Genesis, in terms of hardware sales ranking.

While hardware sales are looking a little rough, Xbox's gaming revenue leaped 51% compared to last year, bringing the Q3 earnings to $1.8 billion--a record-setting amount for the company. That huge growth comes with a caveat however, as all of it comes from the finalized acquisition of Activision Blizzard. Without them, Microsoft would have experienced a 4% year-over-year decline in revenue. Similarly, Xbox content and services saw an increase of 62% from last year, but factoring Activision Blizzard out of the equation shows that the numbers would only be up a single 1% total.

Microsoft expects to continue to see Xbox sales decline in the next quarter, with CEO Satya Nadella ending the earnings call on a statement regarding Xbox "meeting players where they are", and highlighting Xbox game sales on the Nintendo Switch and PlayStation 5.

We are committed to meeting players where they are by bringing great games to more people on more devices. We set third quarter records for game streaming hours, console usage, and monthly active devices.”

“Finally, we’re expanding our games to new platforms, bringing four of our fan favorites to Nintendo Switch and Sony PlayStation for the first time. In fact, earlier this month we had 7 games among the top 25 on the PlayStation Store, more than any other publisher.

:arrow: Source
 

Ryab

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Microsoft's Q3 financial report is in, and there are some less-than-ideal results for the Xbox brand. According to the document, Xbox hardware sales tanked by a massive 31% compared to last year's sales, which were already down by 30% in the previous Q3 report, meaning total Xbox Series X|S sales have more than halved since 2022. While there aren't any exact numbers reported by Microsoft in terms of total Xbox Series X|S units sold, some gamers have sleuthed out that according to publisher Take-Two's own earnings report, 77 million Gen 9 video game consoles have been sold, and Sony themselves have stated the PlayStation 5 has surpassed 50 million systems sold. That puts Xbox's current generation hardware at about 25 million units sold, putting it ahead of the Nintendo GameCube, but behind the Sega Genesis, in terms of hardware sales ranking.

While hardware sales are looking a little rough, Xbox's gaming revenue leaped 51% compared to last year, bringing the Q3 earnings to $1.8 billion--a record-setting amount for the company. That huge growth comes with a caveat however, as all of it comes from the finalized acquisition of Activision Blizzard. Without them, Microsoft would have experienced a 4% year-over-year decline in revenue. Similarly, Xbox content and services saw an increase of 62% from last year, but factoring Activision Blizzard out of the equation shows that the numbers would only be up a single 1% total.

Microsoft expects to continue to see Xbox sales decline in the next quarter, with CEO Satya Nadella ending the earnings call on a statement regarding Xbox "meeting players where they are", and highlighting Xbox game sales on the Nintendo Switch and PlayStation 5.



:arrow: Source
Well yeah because in recent years both the Playstation and Xbox have become more of computers than anything. They release most of their games on PC and are really just gaming boxes. Xbox especially in this case. I mean the Xbox has nearly every game on PC and the console literally allows running homebrew natively.
 

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Sales of a three year old console have dropped by 50% compared to year 2, how does that compare to other consoles through history? Not including PS5 because it had supply issues.
 

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Considering they're bringing their exclusives over to other consoles now I'm pretty sure they've given up on the console market. Which is bad news IMO because that gives Sony free reign over the high end console market. (Nintendo's in its own category.) Here's to hoping Valve makes a new Steam Machine running SteamOS 3 (with their branding like the Deck) and actually advertises the thing with a retail presence. Also, make the Steam Controller 2 already. The console market needs competition or both of them will end up dead.
 

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Sales of a three year old console have dropped by 50% compared to year 2, how does that compare to other consoles through history? Not including PS5 because it had supply issues.
Nintendo Switch sales increased in year 3 by around 23% in comparison to year 2.
 

Chary

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Is xbox still having trouble selling in non speaking regions? I remember watching a youtube video talking about xbox consoles struggles in japan.
According to a few reports from last month, sales in the EU are dire, to the point of brick and mortar stores not wanting to carry Xbox physical game stock, and publishers finding releasing games in the EU on Xbox to be a waste.
 

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Who remembers the original Xbox had plans to be Dreamcast backwards compatible? The Duke controller is basically the evolution of the Dreamcast controller - and Microsoft poached Sega hardware talent in the initial days of development

Microsoft going the way of Sega, ditch the console market and sell software

Will the series X be the last Xbox home console we see?

Admittedly I can't help but think better marketing and actually giving these consoles names that didn't suck would have helped. Seriously Xbox One and Series X?
 

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Is xbox still having trouble selling in non speaking regions? I remember watching a youtube video talking about xbox consoles struggles in japan.
They try to cater to Japan by introducing more Japanese games to their catalogue, but they do so shitty job with this (like getting FF XIV MMO on console while not allowing playing it without paying for Xbox Live, and on Playstation you can play it without PS Plus) that they are doomed.
 

Sonic Angel Knight

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According to a few reports from last month, sales in the EU are dire, to the point of brick and mortar stores not wanting to carry Xbox physical game stock, and publishers finding releasing games in the EU on Xbox to be a waste.
Surprise EU has it bad, I figured Japan would. Maybe the fact people can buy a game console... without a disc drive (Blasphemy) plays a role? Sounds dumb but still. Ordering stuff online just to have it ship to your house, is just as much like downloading a game from the xbox store. Neither requires you to leave the house. The magic of midnight release is gone. :ninja:

I suppose it makes sense they rather focus on their consoles or games selling instead of printing copies to preserve games. Without games to sell, there nothing to preserve? :blink:
 

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I got a series s when it was on offer mainly for dev mode and so I could leech of my dad's gamepass premium. though tbh my housemate uses it a lot more than me as I've been too fixated on my softmodded wii lol
 

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Between the laggy ad-filled interface and the proprietary and expensive storage, I'd only get games for the Xbone as a last resort. Thankfully since it doesn't have any exclusives, I don't really need to.

About the only thing the modern Xbox consoles are good for is playing upscaled original Xbox games. It's not even great at upscaling 360 games, but I guess you can play them there too.
 

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