Xbox One Hardware Revenue Dropped 48% Last Quarter - News
by William D'Angelo , posted on 01 October 2019 / 5,339 Views
Microsoft has announced its earnings result for the fourth quarter of fiscal year 2019, which ended on June 30. Microsoft for the quarter reported GAAP revenue of $33.72 billion and net income of $13.19 billion.
"It was a record fiscal year for Microsoft, a result of our deep partnerships with leading companies in every industry," said Microsoft CEO Satya Nadella. "Every day we work alongside our customers to help them build their own digital capability - innovating with them, creating new businesses with them, and earning their trust. This commitment to our customers’ success is resulting in larger, multi-year commercial cloud agreements and growing momentum across every layer of our technology stack."
Xbox hardware revenue dropped 48 percent for the quarter year-on-year, while gaming revenue as a whole declined 10 percent to $2.05 billion. Xbox software and services declined three percent against a strong quarter a year ago. This was partially offset by subscriptions growth.
The number of Xbox Live monthly active users increased 14 percent to 65 million.
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 wdangelo@vgchartz.com or on Twitter @TrunksWD.
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Xbox is quickly becoming the 3rd wheel of gaming. A PC, PS4, or Switch are all better platorms than Xbox. Xbox only really keeps pace with the PS4 in the USA. In most other markets it loses badly to the PS4 in sales. Even Nintendo is going to surpass the XB1's lifetime sales this year.
Lol you think I have an Xbox?
That would explain your comment very well.
That's not even circling the drain anymore, that's just done.
Soon to be dead last, well deserved too, the amount of games now that are just coming out on NS & PS4, or NS, PS4 and PC but no X1 release is astonishing. Glad i jumped ship, Microsoft are done.
Yeah PS4 has 30-40% more AAA games rated 80% or higher, than XB1. There's way too many PS4/PC titles that don't have XB1 versions. This isn't surprising though. MS doesn't bother with games unless they think they will sell over 500,000 units. Japanese devs often skip MS entirely, because MS doesn't have a console presence in Japan.
Switch may still have less games than XB1, but it has made itself unique with the portability, and exclusive games. Nothing MS has done makes the XB1 stand out, or unique.
Yeah PS4 has 30-40% more AAA games rated 80% or higher, than XB1. There's way too many PS4/PC titles that don't have XB1 versions. This isn't surprising though. MS doesn't bother with games unless they think they will sell over 500,000 units. Japanese devs often skip MS entirely, because MS doesn't have a console presence in Japan.
Switch may still have less games than XB1, but it has made itself unique with the portability, and exclusive games. Nothing MS has done makes the XB1 stand out, or unique.
Yep I loved my Xbox 360 but I jumped ship to PS4 and thank god I did.
I think you're ignoring all the AAA games that are X1, PS4 and PC only.
MS have lost touch with gamers and don't release anywhere near enough exclusives. They focused more of watching tv and such than they did games this gen. It's no wonder that they are so far behind this gen in console sales.
Do you feel MS buying multiple studios is an effort to address that opinion you have?
For next gen, hopefully.
Yea that's why they have all those studios. Problem is there is no reason for me to go back now. Sony has been perfect this gen I see no reason to leave backwards compatibility, trophies, and series that I have fallen in love with. With my gaming I'll just play whatever they release on there.
Software revenue is more important.
Profit (revenue - cost) is most important.
Basically software is the way to go. Xbox is also on PC and is now starting to offer gaming services which void console purchases. We are starting to see that here.
I picked up the fortnite bundle, got an extremely good deal. It seems like a lot of people don't like Xbox One, especially on this site. :( Hope they do better in the future.
With that said....
This is my first console this generation, and I actually really really really like my Xbox One S. As long as I can play games like Final Fantasy, Metal Gear, Halo, Crash Bandicoot, etc I am pretty much set. I know Microsoft doesnt have the first party titles like Nintendo or PS has been building up, so we will have to see what happens next generation.
That's the problem. Microsoft seems to be desperately waiting for next generation to come, they've been waiting for it for years. They're desperately waiting for next generation that they're not making any efforts to make good exclusive games or anything that would make people interested in their platform. Microsoft believes that it's too late to make any effort. When next generation Xbox is released they will probably dump support of xb1 really fast which could be a good thing. But by doing that they might piss off many customers and more people will migrate to other platforms. It is a really tricky situation for Microsoft thanks to Don Mattrick and his team look how much damage they did to Microsoft from just one or two press conferences.
@Ashadelo Best advice I can give you is just ignore the masses on this site. If you enjoy the games than play what you enjoy. Xbox S and X are very solid systems. I am mainly a PC gamer but I do enjoy my Xbox X in the living room with the ability to play Xbox games on my PC which comes in handy. the X1 is also a superior version to the 360 in BC so all your old games count as well. Sales don't make games better. In fact consoles like the DreamCast and GameCube are some of the best consoles iv played and they all undersold. Consider the X1 in a similar boat. Gears 5, Battletoads, Ori Will of the Wisps and Halo Infinite are just around the corner.
Xbox 1 exclusives are absolutely pathetic. When Sony made Uncharted 4, God of War, Horizon Zero Dawn, Spiderman and Days Gone and making death stranding, the last of us part 2 ...etc and many more great exclusives. Xbox gave the fans crackdown 3 and sea of thieves to compete with all tv3 above.
@Ashadelo As you can see, the poster above is exactly my point. The site is full of them. They don't understand individual preferences and majority like to compare apples to oranges. Most posters haven't even played the games they are so willing to shoot down because of physical sales or launch day reviews. If you love the games you mentioned than all power to you. Halo is definitely a franchise to stick around for and Infinite is looking set to be a great experience.
No. As a matter of fact those XB fanboys who keep blindly defending every bad decision Phil Spencer and his team are making are the ones who brought Xbox to this miserable situation. If those fanboys said from the beginning that they're not OK with things like crackdown 3, sea of thieves and Xbox SAD that would have made MS rethink their strategy and put more effort to try to compete with Sony and Nintendo. Now they're just in constant fight for survival with declining sales. It won't even catch up with xb360 lifetime sales. And you probably won't see that halo infinite this generation, it Will a project Scarlett launch title so yeah stick with your xb1 until XB Scarlett is released to play Halo infinite
@Golden Who cares about sales, if you enjoy the games it shouldnt matter about how well a game or consoles sells especially in a digital world where these charts dont include them. Phil is doing a great job. Words of advice, A console doesnt have to be top selling to be enjoyed.
There is a reason why ps4 sold 97 million and XB sold less than half of that and it's dropping 48%. The best games are multiplatform whereas the best Nintendo switch and ps4 games are exclusive games. So yeah Xbox sucked this generation but whatever.
@Golden So you are basing quantity of sales off quality of games the system has? The gaming industry as a whole has over a billion gamers, and only 100m brought a PS4, 40m brought a X1 and 30m brought a Switch.. With your logic, you are admitting Mobile and PC gaming to be the best because they have 5x to 10x more customers. Back to my original point, Sales don't mean and shouldn't mean anything to someone's gaming preferences. What's on PS4 is not on X1, what's on X1 is not on PS4 and what's on Switch etc etc. The Poster stated he liked Halo, so how does he play Halo on console? Does he go out and buy a PS4? No.
You don't need to be a genius to know that good games sell better than average and bad games. High quality games drive hardware sales. When a console is selling well is mainly because of its quality game library especially exclusive ones that can only be played on that console which is exactly why Nintendo switch and PS4 are selling better than XB.
Those dropa are big, but I don't know that they're really out of line with what would be expected at the end if the generation.
The 14% growth in XBL is also big, considering how few people are coming into the console family. I'd like to better understand how that works....
I'd also like to see Gamepads numbers.
Sales are definitely declining but its also a platform hugely dependent on holiday sales. Its always selling low outside of that.
Also, while Switch is selling way ahead of Xbox. Studios use Xbox to sell games that simply don't do as well on Switch or won't be ported to Switch. This is partly why MS supports Switch, that aren't direct competitors.
Again, sales are declining and new consoles coming aren't helping. Frankly, I'm somewhat concerned of the Xbox's future, I hope their next platform can sell 40+ million again. But sharing games with other platforms will be good for software revenue regardless.
Xbox is becoming primarily a service console.
doubt that would have had the same impact last year on the X1, considering that on the X1 free to play games like Fortnite and paladins all require you have xbox live gold, on both Switch and the PS4, free to play games are free... to play, you don't need to pay a 50e subscription to play those titles which makes them cheaper by a large degree.
@Ganoncrotch - Your comment is irrelevant. He's simply suggesting the Fortnite marketing may have some impact, the average consumer may not be aware of subscription requirements.
It could be a number of reasons people still buy Xbox. Such as exclusives, interest in subscription services like Game Pass, maybe people just want to have the same console as a friend/family. So in the next gen they need to lean into having more exclusives than previous gens and push Game Pass as a bargain in the industry. At least encourage people to have it as a secondary console.
