As a seasoned gaming enthusiast who has weathered numerous console generations, I must admit that Microsoft’s recent hardware sales slump with the Xbox Series X has left me slightly concerned. Having spent countless hours immersed in the vibrant world of gaming, I can’t help but feel a pang of nostalgia for the thrill of unboxing a brand-new console and diving headfirst into its innovative features.
In their Q4 2024 financial report, Microsoft showed growth across various metrics such as revenue, profit, and earnings per share. Yet, it seems the gaming hardware sector did not perform as well last quarter, with the Xbox division suffering a significant loss in hardware sales. Specifically, there was a year-on-year decrease of 42 percent in this area.
In Microsoft’s Q2 2024 earnings report (as detailed in the linked Earnings Call Slides), it was disclosed that sales of Xbox hardware dropped by 42% despite gaming revenue rising by 44%. This trend suggests a growing preference for services such as Xbox Game Pass. It’s important to mention that owning an Xbox console is not mandatory for using Xbox Game Pass. Microsoft’s cloud gaming service can be accessed via PC, Samsung devices, and more recently, Amazon Fire TV, which might discourage potential Xbox gamers from buying a dedicated console.
The struggling hardware performance of Xbox is not just impacting Microsoft; it has also led to a decline in sales for AMD’s custom semiconductors, as reported in their quarterly financial statement. This decline can be partly attributed to the decreasing console sales from Xbox.
At Shacknews, we’re currently broadcasting the Q4 2024 earnings call by Microsoft (MSFT). This event offers valuable insights into the company’s near future. Rest assured, we’ll keep you posted on financial news from Microsoft and other significant tech companies right here at Shacknews. Stay tuned for more updates!
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2024-07-31 01:27