After a record-breaking first quarter last year, Microsoft has announced a 13% drop in Xbox gaming revenue for the last quarter, but says Game Pass has hit “new highs.”
In its latest earnings report for the second quarter of the current fiscal year ended December 31, 2022, Microsoft confirmed a 13% decline in gaming revenue compared to the same quarter last year (thanks Windows Central), highlighting declines in first party content and lower revenue. in third-party content.
It also noted a 12% decline in revenue from Xbox content and services, alongside a 13% decline in Xbox hardware revenue – though all declines were broadly in line with previous expectations, with the drop being attributed to a strong previous year. year in FY22 Q2. In that quarter, Microsoft launched Halo Infinite, Forza Horizon 5, and Age of Empires compared to the most recent quarter, where Xbox’s only first-party title was Obsidian Entertainment’s Pentiment.
Despite the reported revenue declines, Microsoft said the cuts were offset by continued growth for Xbox Game Pass, which saw “new highs” in “subscriptions, hours of game streaming and monthly active devices,” according to Frank X. Shaw, the company’s chief communications manager. on Twitter. Game Pass is said to now have 120 million active users, but Microsoft has yet to provide an update on the number of subscriptions, which was announced to have reached 25 million last January – a figure that has remained the same throughout the year.
Of course, 2023 will be a busy year for Xbox, with the highly anticipated release of Bethesda’s Starfield, Arkane’s Redfall, and more. Microsoft will be detailing some of its upcoming first-party titles, including Redfall, Forza Motorsport, and Minecraft Legends, tomorrow, January 25, as part of a developer-focused livestream.