Xbox Revenue Sees 13% Decline in Q2, Offset by Game Pass Growth

Microsoft has reported a decline in Xbox division revenue for the latest quarter, despite overall revenue growth. The company saw a 13% decline in gaming revenues and a 12% decline in Xbox content and services revenues for the three months ended December 31, 2022. However, this was partially offset by growth in Xbox Game Pass subscriptions and a record number of active players. Key figures include: $52.7 billion in revenue, up 2% year-on-year, and $16.4 billion in net income, down 12%. The More Personal Computing division, which includes Xbox, saw a 19% decline in revenue, attributed to declines in Windows, Devices, and Gaming divisions. The decline in Xbox content and services revenue was expected due to the lack of first-party releases, but was partially offset by growth in Xbox Game Pass subscriptions. CEO Satya Nadella highlighted the growth of Game Pass subscriptions, game streaming hours, and monthly active devices, with a record 120 million monthly active players. The company expects gaming revenues to continue declining in the next quarter, but is energized by its upcoming line-up of AAA game launches.