With the Xbox division, Microsoft failed to build on previous years' successes. This, among other reasons, is attributed to a lack of first-party content.
Microsoft is among the first companies to publish their annual reports for the last quarter of the year.
After a period of robust sales growth in the games industry, Microsoft's games division had to come to terms with declines in the last quarter. Although these were anticipated, the lack of major games from Microsoft's first-party studios seems to have confirmed the trend.
In comparison to the same period last year, Xbox content and services revenues fell by 12 percent and Xbox hardware sales fell by 13 percent.
Microsoft reports that revenue from content and services "diddled compared to a strong previous year," partially owing to increases in Xbox Game Pass subscriptions.
120 million people are actively involved in the sport.
Microsoft did not release a new figure for Xbox Game Pass subscriptions, but did state that the number of monthly active players who are engaging with Xbox content on any device has increased.
Game Pass subscriptions, game streaming hours, and monthly active devices set new highs, and monthly active users reached a new high of 120 million during the quarter.
In comparison to the previous holiday season, Microsoft had few first-party games in its library. At the same time, note that 2021 was tough to beat. "Halo Infinite" and the Xbox Series X and Xbox Series S consoles, which were still quite new at the time, provided plenty of sales potential in combination with increased availability. Also released was "Forza Horizon 5.."
Microsoft's chief financial officer, Amy Hood, forecasted that Xbox's gaming revenues would decrease in the low to mid-teens.
The Xbox and gaming segments of Microsoft's More Personal Computing division saw revenue decline by 19 percent to $14.2 billion due to declining in several industries, including gaming. Overall, Microsoft generated $52.7 billion in revenue, compared to the previous year.
10,000 employees have been laid off.
Microsoft announced a significant downsizing, which will remove over 10,000 employees, including some from The Coalition, 343 Industries, and Bethesda.
Microsoft claims that these layoffs are in response to a drop in consumer spending and the current recession. However, it is unknown how these reductions will affect future game development in the Xbox division, and which teams and games will be affected.
This Microsoft FAQ might interest you as well.
Microsoft is hosting a showcase starting at 9 p.m. today to demonstrate what Xbox and PC gamers may expect in the coming months. Games such as "Forza Motorsport", "Minecraft Legends," "Redfall" and "The Elder Scrolls Online" will be shown.
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