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Xbox Q2 hardware sales fall 29% as the game pass experiences record growth


Microsoft has published its financial results for the second quarter of its fiscal year, which saw that their general games of the games decreased by 7%, while hardware sales fell by 29%.

The numbers:

For three months ended December 31, 2024:

  • Revenue: $ 69.6 billion (12% more year -on -year)
  • More personal computer income (incl. Xbox): $ 14.7 billion
  • Operational income: $ 31.7 billion (10% more year -on -year)
  • Net income: $ 24.1 billion (10% more year -on -year)

The outstanding aspects:

Microsoft experienced a positive quarter in general, driven by its cloud services that generated $ 40.9 billion (21% more year -on -year). His AI business also saw a significant increase of 175% year -on -year, since he had exceeded an annual income rate of $ 13 billion.

While its game segment saw a decrease in Xbox’s income, content and services increased by 2% due to the “stronger performance” in the Blizzard content of Activision, including the launch of Call of Duty Black OPS 6.

In the earning call, the Microsoft CEO, Satya Nadella, shared that Xbox game Pass established a new quarterly revenue record, with its PC subscriber base in more than 30%.

Nadella also revealed that 140 million hours were broadcast on Xbox Cloud gaming during the quarter.

He also pointed out that Indiana Jones and the big circle have been played by more than four million people since its launch on December 9, 2024.

Reflecting on the game segment, Nadella said Microsoft is delivering its plan to “improve business profitability” by providing “higher margin and platform content.”

Looking towards the future, Microsoft expects Xbox content and services to increase in the “low media digits” for the third quarter, driven by the content of the first part and the Xbox game pass. He expects hardware income “to decrease year after year.”





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