Microsoft (MSFT) Q2 2023 Xbox hardware sales declined 13% from prior year's quarter

Published , by Donovan Erskine

Microsoft (MSFT) has released its earnings report for Q2 2023, detailing its financial performance for the past few months. While a large portion of this report focused on AI and cloud technology, a chunk of the report was dedicated to gaming. Here, the company shares some insight into the performance of the Xbox brand, which saw a 13 percent decline in hardware sales compared to the same quarter of the previous year.

The Powerpoint presentation provided alongside Microsoft’s Q2 2023 earnings report includes the new details on the company’s gaming division. During Q2 2023, Xbox hardware (console) sales were down 13 percent compared to the previous year. In Q2 2022, Microsoft boasted a 10 percent increase in Xbox hardware sales, though the demand for consoles might have been higher then. The company neglected to provide any reasoning behind the decrease in console sales.

Microsoft does share that Xbox Game Pass had a solid year in terms of subscriber growth. This is further impressive when you consider the lack of major first-party Xbox games launching during the period.

As the Xbox Series X gets further from its November 2020 launch, it’s been fascinating to monitor its sales and financial performance as the market evolves. Today’s hardware news stems from Microsoft’s (MSFT) Q2 2023 earnings report, which showed the company missing revenue expectations and hitting EPS expectations. For more financial news from the tech and gaming industries, stick with Shacknews.