With the Xbox division, Microsoft was unable to build on previous years' achievements in the past quarter. This is among other reasons.
Microsoft is among the first companies to publish their annual reports for the last quarter of last year.
After a successful run in the gaming business for several years, Microsoft's games segment had to come to terms with declines in the past quarter. While these were expected, the lack of major games from Microsoft's first-party studios appears to have confirmed the trend.
Compared to the same time last year, Xbox content and services revenue fell for the same period last year, but hardware sales also fell for the Xbox division.
Microsoft claims that content and services revenue "stripped" compared to a good year last year, partly owing to increases in Xbox Game Pass subscriptions.
120 million people are active in the game.
Microsoft did not give out a new number for Xbox Game Pass subscriptions, but did state that the number of monthly active players engaging with Xbox content on any device has increased.
Game Pass subscriptions, game streaming hours, and monthly active devices set new highs. In the quarter, monthly active users reached a new high of 120 million.
This past holiday season, Microsoft didn't have many first-party games in its lineup. However, note that 2021 was tough to beat. The Xbox Series X and Xbox Series S consoles, which were still relatively new at the time, provided plenty of sales potential in combination with increased availability.
The latest drop was in line with Microsoft's earlier projections. In October, Microsoft's financial officer, Amy Hood, said that Xbox's gaming revenues would fall in the low to mid-teens.
Microsoft's Xbox and gaming sections are part of its More Personal Computing division, which saw revenue decrease by 19 percent to $14.2 billion as a result of changes in several industries, including gaming. Overall, Microsoft generated $52.7 billion, an increase of two percent from the previous year.
10,000 employees have been laid off.
Microsoft issued bad news a few days ago: the company would lay off over 10,000 workers, including some employees from The Coalition, 343 Industries, and Bethesda.
Microsoft claims that the layoffs are a reaction to declining consumer spending and the ongoing 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 article might also interest you:
Microsoft is hosting a demo today at 9 p.m. to showcase what Xbox and PC gamers can expect in the coming months. Games such as "Forza Motorsport", "Minecraft Legends", "Redfall" and "The Elder Scrolls Online" will be shown.
Microsoft has released a number of new information.
On the PlayStation Forum, you can discuss this information.
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