Tech giant Microsoft has reported that its Xbox division saw a one per cent revenue increase year-on-year.
That's according to the company's financials for the three months ending June 30th, 2023, in which it reported that its games business had grown by less than expected. CEO Satya Nadella (pictured) told investors that this was due to "weakness in first-party and third-party content performance." It still saw a $36 million increase year-on-year.
The small increase year-on-year is due to Xbox's hardware business seeing a 13 per cent decline as console sales slow down. This was offset by a five per cent rise in the company's content and services – i.e. games and subscriptions – revenue.
Speaking of subscriptions, Nadella says that it saw record engagement for a Q4 on its Game Pass service. The exec said that the number of hours people spent on the platform rose by 22 per cent year-on-year. There's no updated figure on how many actual subscribers that Game Pass has attracted, pointing to this figure still being in the region of the 25 million users the service boasted in January 2022.