Home / Channel / General Tech / Xbox Series X/S sales take a hit, but Game Pass continues to drive growth

Xbox Series X/S sales take a hit, but Game Pass continues to drive growth

Microsoft has published its latest quarterly earnings report, giving us a new look at how Xbox is doing. While Xbox Series X/S consoles have begun selling out in some countries due to Starfield's upcoming launch, Xbox console sales have dropped by 13 percent, but overall gaming revenue has continued to increase.

During the earnings call, Microsoft CEO, Satya Nadella, confirmed that gaming revenue has increased by 1% over the last quarter, but overall engagement within the Xbox ecosystem has seen a more substantial bump. Microsoft says Game Pass usage has increased by 22 percent year-on-year.

Game Pass growth has been driven by the addition of new platforms. The subscription service is becoming more popular amongst PC gamers for instance, and Game Pass Ultimate offers those with just a web browser to stream a vast library of titles.

Microsoft should see a bump in gaming revenues later this year following the release of Starfield in September. Microsoft is also looking to add Activision Blizzard King to its roster of subsidiaries. Call of Duty brings in over $1 billion each year, and King's mobile games are also highly successful. Adding those to the Xbox arsenal will lead to another boost and more sustainable income between major tentpole game releases.

Discuss on our Facebook page, HERE.

KitGuru Says: Given that Redfall didn't gain any traction in May, I'm not surprised to hear that Xbox console sales dipped over the last quarter. However, with the company now focusing more on supporting a wide range of devices, like PC and mobile, console sales aren't quite as important to Xbox's bottom line as they used to be. 

Become a Patron!

Check Also

Ubisoft bosses mulling over company split and spin-off

As Ubisoft struggles to improve its share price, the company has been quietly evaluating all …

We've noticed that you are using an ad blocker.

Thank you for visiting KitGuru. Our news and reviews teams work hard to bring you the latest stories and finest, in-depth analysis.

We want to be as informative as possible – and to help our readers make the best buying decisions. The mechanism we use to run our business and pay some of the best journalists in the world, is advertising.

If you want to support KitGuru, then please add www.kitguru.net to your ad blocking whitelist or disable your adblocking software. It really makes a difference and allows us to continue creating the kind of content you really want to read.

It is important you know that we don’t run pop ups, pop unders, audio ads, code tracking ads or anything else that would interfere with the KitGuru experience. Adblockers can actually block some of our free content, such as galleries!