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News video games 25 April 2019, 15:35

author: Adrian Werner

Microsoft's Revenue From Games is Rising, Xbox Sales in Decline

Thanks to Microsoft's financial report, we know that the company's Xbox division is doing very well. However, this is due to the sales of games and services, as the revenue from hardware decreased significantly.

Microsofts Revenue From Games is Rising, Xbox Sales in Decline - picture #1
The Xbox division generates more and more revenues.

Microsoft shared its financial results for Q3 of 2018, i.e. the period from 1 January to 31 March. During this period, the revenue of USD 30.6 billion was generated, i.e. 14% higher than in the corresponding three months of the previous year. In turn, operating profit rose by 25% to $10.3 billion.

These are the results of the whole company, but we are most interested in the company's Xbox division, which covers all of Microsoft's activities on the gaming market. In this category, revenue of $2.36 billion was recorded, an increase of 5%. What is interesting, however, such a result was obtained despite the decreasing role of hardware.

Microsofts Revenue From Games is Rising, Xbox Sales in Decline - picture #2
Hardware is doing worse and worse, and the sales results of games and services continue to rise.

Sales of consoles and accessories manufactured by Microsoft decreased by 33%. At the same time, however, revenue from games and services grew by 12%. The company openly admitted that this was mainly due to the excellent results achieved by games from other publishers.

For Microsoft, a decrease in revenue from sales of hardware is not a cause for concern. The current generation of consoles is almost six years old. Releasing more powerful models has helped to keep players interested, but everyone is looking forward to the next generation.

Both Microsoft and Sony are already working on new consoles. According to recent rumors, Xbox Anaconda will have a better specification than PlayStation 5.

  1. Xbox official website
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