Xbox console sales continue to crater with massive 42% revenue drop

Enlarge / The tumbling continues.

Microsoft’s revenue from Xbox console sales was down a whopping 42 percent on a year-over-year basis for the quarter ending in June, the company announced in its latest earnings report.

The massive drop continues a long, pronounced slide for sales of Microsoft’s gaming hardware—the Xbox line has now shown year-over-year declines in hardware sales revenue in six of the last seven calendar quarters (and seven of the last nine). And Microsoft CFO Amy Hood told investors in a follow-up call (as reported by GamesIndustry.biz) to expect hardware sales to decline yet again in the coming fiscal quarter, which ends in September.

The 42 percent drop for quarterly hardware revenue—by far the largest such drop since the introduction of the Xbox Series X/S in 2020—follows an 11 percent year-over-year decline in the second calendar quarter of 2023.