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Xbox hardware revenue fell 42% from Q4 2023

Meanwhile, Xbox's overall gaming revenue is up by nearly the same percentage.

Ozzie Mejia

July 30, 2024 3:10 PM

Xbox

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Microsoft reported in with its Q4 2024 earnings, which boasted an increase in revenue, income, and diluted earnings per share. However, one area where the company did not appear to excel last quarter was gaming hardware sales. The Xbox division posted a substantial loss for its hardware sales, posting a year-over-year loss of 42 percent.

As part of Microsoft's Q2 2024 earnings report (via the linked Earnings Call Slides), the company revealed that Xbox hardware sales declined by 42 percent even as gaming revenue increased by 44 percent. This points to an increased usage of services like Xbox Game Pass. However, it's worth noting that Xbox hardware is not necessarily required to use Xbox Game Pass. Microsoft's cloud gaming initiative is available through PC, Samsung devices, and recently expanded to Amazon Fire TV, giving little incentive for prospective Xbox players to purchase a dedicated console.

Xbox's hardware slump isn't only affecting Microsoft. AMD reported a sales slump for its semi-custom chips as part of its quarterly earnings report, due in part to slumping console sales from Xbox.

Shacknews is streaming the Microsoft (MSFT) Q4 2024 earnings call, where we'll learn more about the company's immediate future. We'll continue to report on financial news from Microsoft and other major tech companies here at Shacknews. Keep it here for further updates.

Ozzie Mejia

Senior Editor

Ozzie has been playing video games since picking up his first NES controller at age 5. He has been into games ever since, only briefly stepping away during his college years. But he was pulled back in after spending years in QA circles for both THQ and Activision, mostly spending time helping to push forward the Guitar Hero series at its peak. Ozzie has become a big fan of platformers, puzzle games, shooters, and RPGs, just to name a few genres, but he’s also a huge sucker for anything with a good, compelling narrative behind it. Because what are video games if you can't enjoy a good story with a fresh Cherry Coke?