Microsoft Q4 Earnings Reveal Decline In Xbox Hardware Revenue, While Sony's PlayStation Sales Soar

Comments
Loading...
Zinger Key Points

Microsoft Corporation's MSFT Xbox reported a 13% decline in hardware revenue for the fourth quarter and the full fiscal year ending June 30 due to lower console sales compared to 2022.

Yet gaming revenue increased by $36 million, driven by growth in Xbox content and services like Game Pass and third-party content, IGN reports. 

See Also: Microsoft Reportedly Discontent With Xbox Performance, Says Gaming Journalist: What's Going On?

Microsoft has not provided specific sales figures, making it difficult to directly compare Xbox hardware revenue.

Nevertheless, it is evident that after experiencing a surge in sales attributed to relaxed supply chains last year, the last few quarters have seen a decline in hardware sales, with a 13% decrease in the second quarter and a further 30% decrease in the third. 

Competitor Sony Group Corporation's SONY PlayStation reported strong hardware sales in the fourth quarter, with sales three times higher year-over-year, reaching a total of 38.4 million units sold.

The contrast between the two gaming giants' performance is remarkable, and this news is part of a larger narrative that Microsoft is struggling to compete with Sony and failing to offer enough to entice gamers to choose Xbox over PlayStation.

Read Next: Project Q Leak: Sony's PlayStation Handheld Surprises Gamers With Weird Design

Image credits: Miguel Lagoa on Shutterstock.

Overview Rating:
Speculative
50%
Technicals Analysis
66
0100
Financials Analysis
40
0100
Overview
Market News and Data brought to you by Benzinga APIs
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise

Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!