MICROSOFT: GAMING DIVISION IS GROWING, GAMES AND SERVICES ARE DOING WELL, XBOX SALES ARE DECLINING
How did Microsoft’s last quarter go? The gaming division continues to grow games and services revenues while hardware profits decline 31% year over year.
Microsoft’s gaming division recorded a +51% compared to the same quarter last year, reaching $5.451 billion. The business linked to contents and services (which includes Xbox games, Xbox Store and Xbox Game Pass) grows by 62%, also thanks to the driving force of Blizzard and King, which guarantee constant revenues thanks to the success of games such as Candy Crush, World of Warcraft and Diablo.
On the other hand, Xbox hardware sales are down 31% , while Surface devices are down 17% compared to the same quarter of 2023. Microsoft expects similar results for the next quarter with a further small growth in services and a drop for hardware sales.
In particular, sales of the Xbox Series X/S would be decreasing in Europe and to a lesser extent in North America. Microsoft is preparing to launch a new version of the Xbox Series Will it be enough to grow the hardware sales of the green-crociate brand?