Microsoft Q4 FY19 Earnings: Gaming Hardware sales down 48%, but subscription services are starting to take over

by Anmol
July 18, 2019

Microsoft has released its Q4 FY19 earnings report today and the company’s gaming revenue declined 10% Year on Year, (-8% in constant currency).

Microsoft revealed that Xbox Hardware revenue declined by 48% (down 47% in constant currency). This is of course due to the lack of new hardware in the last quarter, except for Microsoft’s disc-less Xbox.

Microsoft hasn’t revealed the total number of Xbox consoles sold but did reveal that Xbox software and services revenue declined by 3% (down 1% in constant currency)  driven by a third-party title strength (likely Fortnite) partially offset by an increase in the growth of subscriptions.

Lastly, Xbox Live Monthly Active users grew 14% to 65 million users. Microsoft did not reveal how many of these were Game Pass subscribers.

It seems overall that Microsoft has not proven yet that it can be the Netflix of gaming, but that there is some evidence that they can eventually get there.

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