Xbox sales drop 29% while games and Game Pass stay strong. Microsoft revealed how many people played new Indiana Jones
Indiana Jones and Call of Duty pleased Microsoft, but their results were not enough to completely offset the decline in Xbox hardware sales.
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The successes of Bethesda, Activision, and Game Pass weren't enough to offset Microsoft's decline in console revenue.
The company has released a summary of the second quarter of the fiscal year 2025, which covers the period from October to December 2024. Overall, Microsoft has reasons to be pleased, as its revenues rose by 12% compared to the previous year, partly due to the AI segment, which saw an annual revenue of $13 billion (a 175% increase year over year).
As for other Microsoft divisions, the "gaming" segment recorded a 7% decrease in revenue compared to last year, amounting to a $530 million drop (from $7.1 billion to $6.6 billion). The Xbox content and services branch alone recorded a 2% increase in revenue, but the "devices" turned out to be a problem.
- Sales of Xboxes fell by 29%, continuing the trend from last year (although it should be added that in the second quarter of the 2024 fiscal year, Microsoft's consoles recorded a 3% increase in sales).
Games released by Microsoft had more luck. The company once again confirmed that Call of Duty: Black Ops 6 had the best launch in the series' history and was the best-selling game of the quarter on PS5 and XSX/S (and Microsoft itself turned out to be the biggest game publisher in the world during this time, with a lot of help from Sony players). Besides, it was revealed that over 4 million players have already played Indiana Jones and the Great Circle. Nevertheless, it wasn't clarified how many purchased the new game from MachineGames studio and how many accessed it through Xbox Game Pass.
Speaking of which, Microsoft's subscription program has set a new quarterly revenue record, and managed to increase the user base on PC by 30%. This is supposed to be the main reason for the increase in revenue from the Xbox content and services segment.
The record was also set by cloud gaming. Players were expected to spend 140 million hours in games available through Xbox Cloud Gaming in the past quarter.
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