Gamasutra is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Gamasutra: The Art & Business of Making Gamesspacer
arrowPress Releases

If you enjoy reading this site, you might also want to check out these UBM Tech sites:

Microsoft sees dip in quarterly Xbox revenue as hardware sales slow

Microsoft sees dip in quarterly Xbox revenue as hardware sales slow

July 18, 2019 | By Alissa McAloon

Microsoft has closed out the fourth quarter of its 2019 fiscal year with year-over-year decreases in both its game and Xbox businesses, declines that come as the next generation of consoles looms on the horizon.

For the quarter ending June 30, the company reported a $233 million decrease in game revenue, down about 10 percent from the same period last year. That makes for just over $2.05 billion in game revenue, down from $2.29 billion during the same period last year.

Microsoft’s earnings report calls out a 48 percent year-over-year decline in Xbox hardware revenue specifically, noting that the shift was mainly due to a decrease in consoles sold during the quarter. Xbox software and services, meanwhile, fell by 3 percent year-over-year, offset partially by a rise in subscriptions. Microsoft notes that it had a strong Q4 in that category last year, which likely also contributed to the year-over-year decline.

However on a yearly basis, the company saw an increase in game revenue. Its games business as a whole saw $11.39 billion for the 2019 financial year, up from $10.35 billion in 2018. Monthly active Xbox Live users have also increased over the last year. As of June 30, 2019, Xbox Live has 65 million MAUs, up from 57 million at this same point last year.

In its full report, Microsoft also called out games, cloud/AI engineering, and GitHub as three of the four departments responsible for a 15 percent increase in its R&D expenses.

Related Jobs

Sony PlayStation
Sony PlayStation — San Diego, California, United States

Senior Character TD
Disbelief — Cambridge, Massachusetts, United States

Senior Programmer, Cambridge, MA
Wevr — Venice, California, United States

Senior Game Designer/Scripter (Blueprint, UE4)
Square Enix Co., Ltd.
Square Enix Co., Ltd. — Tokyo, Japan

Experienced Game Developer

Loading Comments

loader image