Published , by Ozzie Mejia
Published , by Ozzie Mejia
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.