Microsoft held its quarterly earnings call this week, where it discussed the company’s performance for Q2 of its Financial Year ’23, including the state of its Xbox/gaming business.
In the presentation, it was revealed that gaming revenue at Microsoft for the quarter declined by 13% with revenue from Xbox content and services down 12% and hardware down 13%. The company cites a strong prior comparable year along with downturns in first-party content and less monetisation across third-part content as other leading causes.
On the flipside of the coin, the company says that Xbox Game Pass subscriptions have grown, with CEO Satya Nadella claiming during the investor call that monthly active users on gaming services in the quarter broke 120 million, which is a record high.
You can read the full report here.
This news comes after Microsoft laid off nearly 5% of its total workforce, including employees from notable Xbox Game Studios teams, but Nadella is confident that the brand will be reinvigorated by a strong first-party offering this year that’ll include the likes of Redfall, Starfield and Forza Motorsport.
A new Xbox & Bethesda Developer Direct is set to stream tomorrow morning and will show off a number of upcoming Xbox Game Studios titles. You can learn more about when and where to watch that here.