It is already habitual: the financial reports of the companies are usually sent every quarter and it is curious to see how each company has sold in recent months. This time it is Xbox’s turn and the truth is that there has been a certain drop in revenue, but the positive aspect is that its great bet, Xbox Game Pass, is increasing in subscribers.
As Microsoft has pointed out on its official website, the fiscal results of the last trimester have already been published. The Xbox division has experienced a decline of one 13% on gaming revenue compared to the same quarter last year. They also point out that Xbox Game Pass has increased in subscribersbut as usual, there are no specific figures.
They also point out that revenue from Xbox content and services has dropped a 12% this quarter compared to last year. Regarding the sales of Xbox consoles, the statistics are similar: Hardware sales have decreased by 13% compared to the same period last year, as summarizes Twitter user Benji-Sales.
Xbox FY23 Quarter 2 Results
• Gaming Revenue Down 13%
• Xbox Content and Services Down 12%
• Xbox Hardware Revenue Down 13%
• 1st party and 3rd party content Declined
• Game Pass Subscribers Grew pic.twitter.com/MQp6E01zZy
— Benji-Sales (@BenjiSales) January 24, 2023
Microsoft has an explanation for this drop, and it is due to the “drops in first-party content and less monetization in third-party content”, although partially offset “by the growth in subscriptions to Xbox Game Pass” whose statements are collected from VGC. “We saw new highs for Game Pass subscriptions, game streaming hours and monthly active devices. And monthly active users surpassed a record of 120 million during the quarter (xCloud included)”, says Satya Nadella (via Tom Warren).
Will another cheaper ad-supported Xbox Game Pass plan arrive?
A survey revealed that Microsoft would be testing the possibility of include advertising through a cheaper subscription plan. That would not be the only disadvantage, since you could not play the first party Xbox launch since you would have to wait 6 months. Of course, it is worth mentioning that Redmond recently patented a system that would allow non-intrusive advertising to be included in the following way: “Personalized content for a non-intrusive online gaming experience.” Even so, it is worth mentioning that advertising in video games is a more than real possibility, and Microsoft has already initiated the legal path in the form of patents.