Home ยป Decline in Hardware Sales: Xbox Dips by 29% from Previous Year, PC Game Pass Membership Surges by 30%

Decline in Hardware Sales: Xbox Dips by 29% from Previous Year, PC Game Pass Membership Surges by 30%

During Microsoft’s Q4 2024 earnings call, the intriguing numbers from their gaming business were as follows:

Total gaming revenue amounted to $6.6 billion, a decrease of $530 million or 7% compared to the same quarter last year. This decline was primarily due to a 29% drop in revenue from their Xbox hardware segment, as console sales dipped. However, software and services revenue saw a 2% increase thanks to the growth of Game Pass.

Call of Duty: Black Ops 6 enjoyed immense success, emerging as the top-selling game on both Xbox and PlayStation in Q4, with record-breaking first-quarter sales.

Indiana Jones and the Great Circle boasted over 4 million players (including Game Pass subscribers), with the development team currently working on the expansion titled “The Order of the Giants.”

Game Pass achieved its highest quarterly revenue to date (specific figure undisclosed), and PC Game Pass memberships saw a 30% growth.

Microsoft’s game sales on other platforms like PlayStation and Steam surged by 60% from the previous year’s Q4, emphasizing the company’s strategy of bringing games to devices favored by gamers.

Source – VGC

TLDR: Microsoft’s gaming business saw a decline in total revenue due to lower Xbox hardware sales but offset by increased software and services revenue. Call of Duty: Black Ops 6 excelled, Game Pass thrived, and sales on non-Microsoft platforms grew significantly.

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