Xbox hardware sales record yet another low in Microsoft Q4 2024 report
The company expects another decline in the next quarter
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Key notes
- Microsoft posted its Q4 2024 results with strong AI & cloud performances.
- On the other hand, the Xbox hardware sales continue to take a dip by 42%.
- However, gaming services, including the Game Pass subscription, still continue to rise.
Microsoft has recently posted its Q4 2024 financial results for all departments. The Redmond giant recorded another height in AI & cloud performances, but Xbox hardware sales continue to dip following the same trend from the previous quarter.
It’s been a mixed quarter for Xbox as the hardware revenue has declined by 42%. In the previous quarter (Q3 2024), it was also down by 31%—its services (like the Game Pass), on the other hand, recorded a 61% increase this quarter alone thanks to the Activision-Blizzard acquisition that brings the Call of Duty franchise to the subscription plan.
Sony’s PlayStation has a massive following, and it’s rare to see players switching from one console to another, especially with star-studded exclusives that each console system has. So, perhaps, to make things up, Microsoft has been shifting its focus to selling software or subscription plans instead—so much so that the company launched a new way to “play Xbox without an Xbox” via Amazon Fire TV Sticks.
Earlier, Microsoft raised the Xbox Game Pass Ultimate price from $16.99 to $19.99 starting July 10, 2024. A new Standard tier will cost $14.99 and offer fewer features, while the Console Game Pass is discontinued for new users but remains at $10.99 for current ones. The PC Game Pass price stays at $11.99.
Microsoft also reported over 500 million monthly active gaming users across platforms but isn’t updating Xbox Game Pass subscriber numbers this quarter. The company expects Xbox content and services revenue to rise by 50% and overall gaming revenue to grow by 30% in the next quarter, partly due to Activision Blizzard, but the Xbox hardware revenue is expected to decline again.
