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Xbox revenue falls 21% as Microsoft gears up for Xbox Series X debut

Xbox revenue falls 21% as Microsoft gears up for Xbox Series X debut

Microsoft’s Xbox enterprise took a success in the newest quarter as the corporate prepares to debut its new Xbox Series X console this vacation season.

Gaming revenue was down 21 % year-over-year to $3.4 billion. Xbox content material and providers revenue sunk 11 % to $2.4 billion, in keeping with the company’s earnings report for the December holiday quarter. Each metrics had been in step with expectations.

Microsoft mentioned the content material and providers revenue was down “in opposition to a excessive prior yr comparable, primarily from a third-party title,” a.ok.a. the success of blockbuster multiplayer recreation Fortnite. The drop was partially offset by subscriptions development with providers such as Xbox Sport Go and Xbox Dwell Gold.

Microsoft CEO Satya Nadella mentioned at this time that the corporate set a brand new document for Xbox Dwell month-to-month lively customers in the course of the quarter. Xbox Sport Go subscribers greater than doubled.

Slowing Xbox One console gross sales — {hardware} revenue decreased 43 % — are hurting Microsoft’s backside line, however that ought to change later this yr as the corporate plans to launch the Xbox Series X console.

Additionally on the horizon is Microsoft’s Challenge xCloud expertise, which entered testing final yr and permits customers to stream their video games from Microsoft’s servers on nearly any appropriate linked gadget. xCloud will probably be coming to Windows 10 as nicely as the Xbox platform.

Microsoft posted revenue of $36.9 billion for the December quarter, up 14%, and surpassed Wall Avenue’s revenue expectations with earnings per share of $1.51.

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