Microsoft reports Xbox revenues are sluggish in Q3

Microsoft released its financial earnings report for Q3 of fiscal year 2023 today. The report includes details about the fortunes of its different departments, including its Windows and Xbox divisions. According this report, Xbox content and services revenues are up about 3%, but the hardware division has dropped by 30%. However, the company overall shows growth as other departments pick up the slack.

According to the financial earnings slides, Xbox hardware revenue is down 30% in this quarter, or 28% in constant currency. Microsoft’s slides indicated that the decline in hardware revenue was driven by increased supply of consoles. Xbox content and services revenue is up 3%, or 5% in constant currency, thanks to Xbox Game Pass. Gaming revenue overall declined 4%, 1% in constant currency.