Xbox Revenue Decreased 21% During the Holiday Quarter - News
by William D'Angelo , posted on 01 February 2020 / 2,383 Views
Microsoft has released their earnings report for the second quarter of its 2020 financial year, which ended on December 31, 2019. The company reported revenue increased 14 percent to $36.91 billion and net income grew 38 percent to $11.65 billion.
"We are innovating across every layer of our differentiated technology stack and leading in key secular areas that are critical to our customers’ success," said Satya Nadella, chief executive officer of Microsoft. "Along with our expanding opportunity, we are working to ensure the technology we build is inclusive, trusted and creates a more sustainable world, so every person and every organization can benefit."
Microsoft announced their overall gaming revenue decreased 21 percent year-over-year, while Xbox content and services revenue also decreased by 11 percent. This is due to the current generation winding down and the lack of more major third-party titles driving sales. 2018 saw the release of Red Dead Redemption 2 and Fortnite at its peak.
Microsoft’s CFO Amy Hood said gaming revenue over the next quarter will decline in the "low double digitl range" due to console sales and lower sales of third-party titles.
Nadella did add that "Xbox Game Pass subscribers more than doubled this quarter." No exact figure was provided. The same goes for the number of Xbox Live users, however, Nadella did say "we set a new record for Xbox Live monthly active users again this quarter, led by the strength of console." This time a year ago Microsoft said there were 64 million active Xbox Live users per month.
Microsoft will launch their next generation home console, the Xbox Series X, this coming holiday.
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.
