04-29-2019, 03:11 PM
Xbox Hardware Sales Slips As Software, Subscriptions Make Up Gap
<p>Microsoft has released its Q3 earnings, and it suggests the current console generation is slowing down and ready for another refresh. Xbox console sales fell by 33% year-over-year, which the company attributes to a simple decrease in sales volume. In other words, people are simply buying fewer Xbox consoles.</p><p>However, the news wasn't too grim for Microsoft. Overall game revenue actually increased by 5% year-over-year, thanks to strong third-party software sales and subscriptions. Xbox Live's monthly active users hit 63 million, up 7% from last year. Altogether the games division raised $2.36 billion in revenue for the quarter, an YOY increase of $112 million.</p><p>The Xbox One is more than six years old now, so the decrease in console sales suggests Microsoft is hitting a saturation point. That's when console manufacturers tend to eye a new generation, and Microsoft may start to explain its vision for the next Xbox at E3. In the meantime, it introduced the <a href="https://www.gamespot.com/articles/xbox-one-s-all-digital-edition-release-date-specs-/1100-6466273/">Xbox One S All-Digital Edition</a>, a new SKU of the console that lacks any disc drive and only plays downloaded games.</p><p>Meanwhile, Microsoft's competition has gotten first to the gate in starting to explain its plans for the coming generation. PS4 architect Mark Cerny began to <a href="https://www.gamespot.com/articles/playstation-5-release-date-price-specs-details-and/1100-6466357/">outline some details on the next generation of PlayStation</a>, including backwards compatibility, a solid-state drive, and other tech specs. It won't be disc-less, which may set it apart from the next Xbox, but that remains to be seen. Microsoft is planning a <a href="https://www.gamespot.com/articles/xbox-shows-project-xcloud-in-action-playing-forza-/1100-6465537/">streaming service</a> that likely will integrate with its future console plans.</p><p>For its part, Sony also recently announced that <a href="https://www.gamespot.com/articles/sony-officially-confirms-ps5-again-as-ps4-sales-ne/1100-6466500/">PlayStation 4 console sales have dropped year-over-year</a>. PS4 sales have been <a href="https://www.gamespot.com/articles/sony-officially-confirms-ps5-again-as-ps4-sales-ne/1100-6466500/">decreasing for years now</a>.</p>
<p>Microsoft has released its Q3 earnings, and it suggests the current console generation is slowing down and ready for another refresh. Xbox console sales fell by 33% year-over-year, which the company attributes to a simple decrease in sales volume. In other words, people are simply buying fewer Xbox consoles.</p><p>However, the news wasn't too grim for Microsoft. Overall game revenue actually increased by 5% year-over-year, thanks to strong third-party software sales and subscriptions. Xbox Live's monthly active users hit 63 million, up 7% from last year. Altogether the games division raised $2.36 billion in revenue for the quarter, an YOY increase of $112 million.</p><p>The Xbox One is more than six years old now, so the decrease in console sales suggests Microsoft is hitting a saturation point. That's when console manufacturers tend to eye a new generation, and Microsoft may start to explain its vision for the next Xbox at E3. In the meantime, it introduced the <a href="https://www.gamespot.com/articles/xbox-one-s-all-digital-edition-release-date-specs-/1100-6466273/">Xbox One S All-Digital Edition</a>, a new SKU of the console that lacks any disc drive and only plays downloaded games.</p><p>Meanwhile, Microsoft's competition has gotten first to the gate in starting to explain its plans for the coming generation. PS4 architect Mark Cerny began to <a href="https://www.gamespot.com/articles/playstation-5-release-date-price-specs-details-and/1100-6466357/">outline some details on the next generation of PlayStation</a>, including backwards compatibility, a solid-state drive, and other tech specs. It won't be disc-less, which may set it apart from the next Xbox, but that remains to be seen. Microsoft is planning a <a href="https://www.gamespot.com/articles/xbox-shows-project-xcloud-in-action-playing-forza-/1100-6465537/">streaming service</a> that likely will integrate with its future console plans.</p><p>For its part, Sony also recently announced that <a href="https://www.gamespot.com/articles/sony-officially-confirms-ps5-again-as-ps4-sales-ne/1100-6466500/">PlayStation 4 console sales have dropped year-over-year</a>. PS4 sales have been <a href="https://www.gamespot.com/articles/sony-officially-confirms-ps5-again-as-ps4-sales-ne/1100-6466500/">decreasing for years now</a>.</p>