Xbox hardware sales continue to decline, while Activision Blizzard helps boost revenue
Microsoftβs latest earnings report has revealed that Activision Blizzard has continued to boost its gaming revenue, as Xbox console sales have continued to decline each quarter.
The details:
According to Microsoft's recent report for the three months ending June 30, 2024, its overall gaming revenue was up 44%, with Activision Blizzard contributing significantly. If Microsoft had not acquired the publisher, revenue would have dropped by 4%.
Xbox hardware sales have also declined by 42% year on year, following a 31% drop in the previous quarter ending in April. Despite lower console sales, Xbox content and services revenue increased 61%, thanks to Activision Blizzard's profits from titles such as Call of Duty.
Both the PlayStation and the Nintendo Switch are experiencing similar sales drops. The decline is likely due to rumors of a mid-generation refresh for the Xbox Series X/S and reports of the PS5 Pro being around the corner. As for the Switch, Nintendo is set to reveal its successor in the first quarter of 2025, with the console now over seven years old.
Xbox believes it may require more than just a new console, with Microsoft CEO Satya Nadella stating that its current goal is to "take a broad set of content to more users in more places" via subscription services such as Game Pass.
More gaming news:
Playground Games, the developer of the upcoming Fable reboot, is said to be working on the game at three different studios, with the third opening recently.
EA CEO Andrew Wilson has stated that he does not believe the ongoing actor strike will have an impact on the company's upcoming or live service games.
