Xbox console revenue fell 30 percent year-over-year this summer

Microsoft's Xbox console revenue has taken a significant hit, falling by 30% year-over-year during the summer quarter. The decline in hardware sales doesn't appear to be directly related to the recent price hikes, which went into effect on October 3 and saw the cost of new consoles range from $20 to $70.

In contrast, revenue from Xbox content and services remained relatively stable compared to the same period last year. Microsoft credited growth in subscription numbers and third-party content for the increase, but noted that this was partially offset by a decline in first-party gaming content.

The decline in hardware sales is likely due to a combination of factors, including the impact of global workforce cuts earlier this year. As part of these cuts, several high-profile games were cancelled, including a modern remake of the classic shooter Perfect Dark and the long-in-development game Everwild from studio Rare.

Despite the challenges facing its Xbox division, Microsoft's overall revenue for the quarter ended September 30 saw a significant increase, rising by 17% to $77.7 billion. The company also reported a 22% increase in operating income.

In a recent earnings call, CEO Satya Nadella highlighted Microsoft's focus on expanding its AI capabilities, with plans to increase capacity by 80% this year and nearly double its data center footprint over the next two years. This growth will be supported by investments in Fairwater, Wisconsin, which has become the world's most powerful AI datacenter, capable of scaling to two gigawatts alone.

Ugh Xbox sales are tanking ... another sign that gaming console companies need to rethink their strategies . It's weird they're not taking a hit from those price hikes tho . Maybe gamers just aren't feeling it? On the bright side, Microsoft is still doing alright I guess ... 17% revenue increase for Q3 is no joke ... but AI expansion plans are pretty interesting . Building the world's most powerful datacenter in Fairwater, WI is straight fire .

Microsoft's Xbox console revenue is tanking . 30% drop is a big deal, but on the bright side, their content and services are killing it . Those subscription numbers are growing fast and third-party games are getting more popular. But come on, what happened to all those high-profile games that got cancelled? Perfect Dark anyone? I mean, I'm not surprised the price hikes didn't affect sales much, but still... it's like they just gave away free money .

On a more positive note, Microsoft is investing big in AI and their data center plans are looking super impressive . 80% capacity increase this year? That's some next-level tech . And Fairwater, Wisconsin being the most powerful AI datacenter? Yeah, that's something to watch . Can't wait to see what they do with it .

man i feel for xbox they had such high hopes with perfect dark and everwild but it seems like things didn't go as planned but on the bright side msft is killing it financially with that 17% revenue increase and a huge jump in operating income so i guess you could say they're still crushing it overall meanwhile sata's focus on ai is super interesting wanna see what all that tech can do for xbox

man, Xbox is struggling like what's going on with their game dev team? Perfect Dark and Everwild were some big names, and now they're just cancelled . I get it, cost cuts and all that, but that's like cutting off your right arm in the process . They should've found ways to make it work, you know?

And then Microsoft is like "oh, our AI is gonna save us" . I mean, AI is cool and all, but what about those console sales? Can't have your cake and eat it too, right?

omg, I'm surprised to hear that Xbox console revenue took a hit like, what happened? I thought they were doing well with their new console and all... but maybe the price hikes didn't sit too well with people? anyway, it's kinda weird that content and services did okay despite the hardware decline. idk if it's just because more ppl are into streaming games now instead of buying consoles

and btw, I'm low-key bummed about some of those cancelled games like Perfect Dark? come on! rare is such a legendary studio... anyway, sounds like Microsoft's still doing well overall tho 17% revenue increase and all that jazz... maybe they just need to focus more on getting the AI game right

I'm not surprised to see Xbox revenue take a hit . I mean, have you seen what's been coming out for them lately? The games just aren't as strong as they used to be, you know? And it's not like they're still innovating and pushing the boundaries of gaming or anything. It feels like they're just churning out more of the same old stuff.

And yeah, I'm with Microsoft on expanding their AI capabilities , though. That's the future of gaming, right? Having all that power at your fingertips to create some crazy experiences. But for now, it seems like they need to get their game face back on so to speak. Still, 17% increase in overall revenue is nothing to sneeze at .

I'm not surprised that Xbox console revenue took a hit . I mean, think about it, they just hiked up the prices and people aren't exactly lining up to shell out extra cash for a new game system. And now, with all these high-profile games being cancelled? Not exactly giving players confidence in the brand.

But what really got me is that Xbox content and services revenue went up . It's like they're trying to make money off people playing online and buying DLC instead of selling them actual hardware. And it's not just about the games, it's the whole subscription model... feels kinda shady if you ask me.

And on a related note, AI is still super hyped right now . I don't know, man, I'm just waiting for someone to tell me how this new datacenter is gonna save my life or something. 80% capacity increase? That's like saying we're going from zero to hero overnight. Not buying it

Xbox is struggling? Not surprising considering all those layoffs and games getting cancelled... I mean, who wants a console when you can't get your favorite franchises out? And now they're pushing up the prices like that? It's gonna be hard for them to turn it around. But on the bright side, at least they're investing in AI and all that jazz . Can't wait to see what kind of sick games they come out with using that Fairwater supercomputer

Xbox is struggling ... 30% decline in console sales? That's crazy! But at least they're making up for it with subscription services and third-party content, right? Microsoft is investing big time in AI, which is cool I guess. They just set a record-breaking AI datacenter in Wisconsin, that's wild . It's all about the future tech and growth now. Can't wait to see how this plays out!

OMG I'm so sad to hear about the Xbox console sales drop! But, yaaas for Microsoft's overall revenue increase though! $77.7 billion is HUGE It makes sense that their content and services are doing well, especially with those awesome subscription numbers And can we talk about AI capabilities? I'm low-key super hyped for Satya Nadella's plans to expand it! 80% increase in capacity this year alone is, like, whoa Can't wait to see what the future holds for Microsoft and Xbox

I'm kinda surprised that Xbox hardware sales didn't take a bigger hit with all those price hikes... I mean, you'd think people would be more hesitant to shell out cash for consoles when they know prices can jump like that . But at the same time, it's not entirely surprising that revenue from Xbox content and services is still going strong - who doesn't love gaming, right? And yeah, I guess Microsoft's focus on AI and data centers makes sense... it's all about innovation and expanding capabilities . But what do you guys think about the Perfect Dark game cancellation? Are you sad to see that one go?

I'm shocked Xbox sales took a 30% hit ! I mean, I knew they were struggling with game development after all those layoffs , but this is crazy. Canceling Perfect Dark and Everwild just makes sense now . But you know what's not making sense? The price hikes in October . I don't see how that could've led to a 30% drop in sales, especially since subscription numbers are up . Maybe the console just isn't holding its value well ? Anyway, on the bright side, Microsoft's overall revenue is still growing , and their AI plans sound solid ... for now

[A picture of a Xbox console with a sad face ]

[ GIF: A "Game Over" screen with a sad music playing ]

[ A meme of a person trying to play a game but the console is not working properly ]

[Image of Microsoft's logo with a growth arrow pointing upwards, but with a small Xbox console in the bottom right corner ]

omg i'm so confused about xbox's numbers... they're like, doing great with their services and stuff, but hardware sales are tanking why did they raise prices? doesn't make sense to me... was it just a random move or is there something we're missing? also, perfect dark getting cancelled is that true? what happened to everwild? was it a slow development process? and btw, 80% increase in ai capacity is crazy how's gonna affect the games and stuff? will they still focus on first-party titles or just rely on third-party devs?

The show must go on even if Xbox is having a tough time. As Mark Zuckerberg once said, "Moving forward requires sharing our knowledge and expertise." It looks like Microsoft is shifting its focus from hardware sales to expanding its AI capabilities and services. While it's a different route, it might just lead to a brighter future for the company

idk what's up with xbox tho they're like "oh we're gonna make more money from games and subscriptions" but nobody wants a new console lol meanwhile ps5 is still killing it on the sales front idc how much ms spends on gaming content, if u wanna play online u gotta buy their subscription lol

I don’t usually comment but I think it’s weird that they're saying the price hikes didn't affect sales . Like, I know it's not just about the price, but also about the value and what you get for your money. And with some of the big games getting cancelled... I mean, who wants to buy a new console if there aren’t gonna be any cool games on it?

But at the same time, I'm glad they're focusing on AI and all that . It's like, the future is coming and we gotta get ready for it, you know? And it sounds like Microsoft is trying to do some serious investing in that area. Maybe they'll come out with something game-changing... like, literally . Can't wait to see what they do next!

yep, another gaming console trying to keep up . 30% drop is crazy. i'm not surprised tho, all these price hikes are like, what's the point? people aren't gonna shell out that kinda cash just 'cause it's a new console. and yeah, global workforce cuts hit the industry hard . Perfect Dark was one of those high-profile games cancelled too... that's sad for fans.

anyway, on the bright side, Microsoft's AI game is strong . 80% capacity increase? that's some serious investment in AI tech. and doubling their data center footprint? that's like, totally gonna change the game . it's all about expanding their capabilities and staying ahead of the curve. but for Xbox console sales? gotta wait and see if they can turn things around

Ugh, can't believe what's happening with Xbox ! 30% hit? That's crazy talk! I mean, I get it, they did raise prices and some high-profile games got cancelled... like, what was the point of even releasing those if they're just gonna cancel them?! But at the same time, growth in subscription numbers and third-party content is a major win . Still, I'm all about that AI expansion . Like, 80% increase in capacity? That's some serious power right there! And Fairwater, Wisconsin... who knew they had such potential for innovation?! Maybe this isn't the end of Xbox after all . Microsoft needs to get its priorities straight, though - console sales are just one part of the equation . We need more investment in indie devs and community-driven projects too .