Summary
- Xbox console sales dropped by 42% in the final fiscal quarter of 2024, marking a significant decline for Microsoft's gaming hardware.
- Despite the decrease in hardware sales, Xbox has seen a significant boost in software revenue and Xbox Game Pass subscribers.
- The next Xbox console is rumored to be in development, with some speculating that it may be a handheld device.
Xbox console sales have dropped once again, continuing a downward trend for Microsoft’s gaming hardware. The past few years have been eventful for Microsoft’s gaming division, with the highly publicized Xbox buyout of Activision Blizzard finally being completed last October and Xbox Game Pass continuing to draw in new subscribers.
Xbox’s hardware sales seem to tell a different story, as recent events and reports seem to suggest that Xbox is moving away from consoles in favor of an increased focus on releasing once-exclusive games to other platforms. Xbox Cloud Gaming has been expanding to platforms like Amazon Fire TV this summer, and titles like Sea of Thieves and Party Animals have begun making their way onto PlayStation 5 in recent months. Insiders have also claimed that Xbox might be scaling back on console marketing in Europe, the Middle East, and Africa due to Xbox Series X/S sales falling behind those of the PS5.
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As reported by IGN and The Verge, Microsoft recently released its latest fiscal report, which indicates that Xbox console sales have dropped for the second quarter in a row. The report states that hardware sales are down a staggering 42% in the fourth and final quarter of the 2024 fiscal year, which is a significantly larger drop from the 31% dip last quarter. According to The Verge Senior Editor Tom Warren, Xbox console sales have been in decline for the entire 2024 fiscal year, with the only reprieve being a 3% boost during the holiday season in the second quarter.
Xbox Hardware Sales Are Down, Software And Services Are Up
Despite this increasing drop in console sales, Xbox is enjoying a major boost when it comes to software, thanks in no small part to Xbox’s acquisition of Activision Blizzard. The new fiscal report states that Xbox gaming revenue is up by 44%, though it is worth mentioning that 48 points of net impact stem from Activision Blizzard. Additionally, revenue from Xbox content and services like Xbox Game Pass is up 61%, though again, 58 points of net impact are the result of the Activision Blizzard acquisition.
Sony, Nintendo, and Xbox have all reported drops in hardware sales, with the Nintendo Switch seeing the most significant decrease. Meanwhile, Xbox’s console revenue decline may be due to the company seemingly downplaying the Xbox Series X/S in favor of digital outlets like Xbox Game Pass and increased multiplatform releases. This hasn’t stopped rumors of Xbox’s next mainline console already being in development, with some claiming that it will be some sort of handheld device in contrast to the current-gen systems.
- Brand
- Microsoft
- Original Release Date
- November 10, 2020
- Hardware Versions
- Xbox Series X
- Original MSRP (USD)
- $499
- Weight
- 9.8 LBS
- Operating System
- Proprietary (Windows-based)
Microsoft's ninth-generation console, the Xbox Series X is a powerful machine that can support 4K resolution and 60 fps, depending on the game. Released alongside the Xbox Series S, the Series X has a Custom AMD Zen 2 CPU, a Custom RDNA 2 GPU, and 16 GB of RAM.
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