There are some areas where the Redmond-based company’s gaming division can report positive results, but there are also some areas that are more worrisome for Microsoft…

The tech giant has released its third quarter results (January-March; it starts its fiscal year in July, not April), and the data is mixed. Microsoft Gaming’s cash flow increased significantly after the acquisition of Activision Blizzard (+51%, and the publisher accounted for 55% of that; without it, it would be -4%), but Xbox also took a nosedive as console sales fell significantly compared to the same period last year. Xbox content and services were up +62%, with Activision Blizzard accounting for 61% of that.

Xbox console sales are down 31% in a year (but it was -30% a year ago…) and Microsoft expects a decline for the current quarter. There was a significant uptick in Xbox sales in early to mid-2022, but at that time the pandemic was still causing some inventory shortages around the PlayStation 5, and that caused many to opt for the other current-gen console. More recently, we’ve heard from retailers that Xbox sales are down so much that some publishers are questioning the money, time, and effort spent on Xbox series ports…

Microsoft has become one of the largest and most profitable publishers, but the situation is not the best for in-house development. Perhaps that’s why the Redmond company has decided to port some of its games to PlayStation 5 or Nintendo Switch. Microsoft CEO Satya Nadella pointed out that seven of the top 25 PlayStation games in April were released by Microsoft, and that they “meet gamers where they are.” “We are committed to meeting gamers where they are by bringing great games to more people on more devices. We set records in Q3 for game streaming hours, console usage and monthly active devices,” Nadella said.

They’re going for the money (hence the multiplatform strategy), but in terms of console sales, Sony is once again running circles around them.

Source: WCCFTech, Microsoft