Xbox Q2 revenue sinks 21% as Microsoft reloads for next gen

Microsoft’s gaming revenue dropped significantly in the second quarter of its fiscal 2020. Xbox’s Q2 revenue plummeted 21% year-over-year during the three-month period ending December 31, the company said while reporting earnings today. But while this is a precipitous decline, it looks worse than it actually is.

This decline is due to Xbox One pushing far past its prime. Microsoft is planning to release the next-gen Xbox Series X this holiday. And many consumers have already made their hardware choice and are now waiting for the new systems. That’s all part of the cyclical nature of the console business.