Microsoft’s Xbox Sales Suffer Biggest Slump Since Launch

Microsoft’s latest earnings report revealed a significant drop in Xbox console sales. Revenue from Xbox consoles plunged a hefty 42% compared to the same period last year.

This decline marks an ongoing trend for Microsoft’s gaming hardware division. Xbox sales figures have been slipping year-over-year for the past six quarters (out of the last seven), and the trend shows no signs of stopping.

In a follow-up call with investors, Microsoft’s Chief Financial Officer, Amy Hood, confirmed expectations of continued hardware sales decline for the upcoming quarter ending in September.

Revenue from Xbox consoles plummeted by a massive 42% compared to the same period last year, marking the biggest drop since the launch of the Xbox Series X/S in 2020. This follows an 11% decline in sales in the previous quarter.

Like its competitors, Microsoft no longer reveals exact Xbox sales figures. However, industry expert Daniel Ahmad estimates that Xbox sold fewer than 900,000 consoles in the quarter ending in March. This is dwarfed by the 4.5 million PS5 units shipped during the same period.

The numbers show that Xbox Series X/S sales likely hit their peak in 2022, just two years after launch. This is unusual because most successful consoles usually sell best in their fourth or fifth year before slowing down.

For comparison, the older Nintendo Switch, released in 2017, is now seeing sales decline. However, its sales dropped by only 36% in the first quarter of this year compared to the same period last year. This is a smaller percentage drop than Xbox’s recent decline.