Xbox Hardware Revenue Falls 29%, Software Up 11% - NewsWilliam D'Angelo , posted on 21 July 2017 / 7,525 Views
Microsoft has released its Q4 earnings report for the 2017 fiscal year. Gaming revenue increased three percent year-over-year to $1.6 billion.
Xbox hardware revenue fell 29 percent year-over-year, mainly due to lower prices and lower console sales. Software sales increased 11 percent, driven by increased Xbox Live transactions.
There are now 53 million active Xbox Live users. That is up from 52 million in Q3 2017, but still down from the 55 million in Q2 2017.
"Our gaming business is now more than $9 billion, and growing profitably," Microsoft's CEO Satya Nadella said during the company's earnings call.
"The gaming world is evolving faster than ever before – from game play across multiple devices, to the explosive growth in streaming and eSports, to new subscription services and mixed reality scenarios. We are uniquely positioned to capture a larger share of this opportunity because of our ability to unite the global community of gamers through Xbox Live – now 53 million strong and growing – and to enable new experiences across PC, console and mobile. Our approach is to let gamers play the games they want, with the people they want, on the devices they want.
"At E3, we celebrated the passion of gamers by introducing the Xbox One X, broadening our portfolio of gaming devices with the world’s most powerful console. We launched two new services that broaden our reach and enrich the gaming experience, both of which are off to a very strong start. Mixer, our new live streaming service, makes it easier than ever before for gamers to create and share across platforms and interact in entirely new ways. Xbox Game Pass is a digital subscription service that expands our existing gaming value proposition.
"In closing, I’m proud of the progress this year – both in our own continued transformation and in how we are empowering customers to digitally transform."
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. You can contact the author at email@example.com or on Twitter @TrunksWD.