On Tuesday, local time, Microsoft announced its fourth-quarter earnings (ending June 30, 2022), with gaming revenue down $259 million (7%) compared to the same period last year, in line with Microsoft’s previous forecast. Xbox hardware revenue declined 11% and Xbox content and services revenue fell 6%.
Microsoft said the decline was mainly due to lower player immersion hours and lower in-game spending by third parties and first parties but was partially offset by growth in Xbox Game Pass subscription services.
Microsoft told foreign media The Verge that the decline in Xbox hardware was partly due to supply constraints, although the console has been on sale for more than two years. But Microsoft also said they still see very strong demand.
According to market analysts DomsPlaying, Xbox’s $3.45 billion in-game revenue for the quarter was Microsoft’s second-best fourth quarter ever.
Microsoft said last month that they still plan to release at least five first-party games in the next year, as of now “Starry Night” and “Red Haze Island” are the only two games confirmed to be released in Microsoft’s current fiscal year, and the remaining three first-party games will be released before June 30, 2023.
