If there was any doubt that more Xbox games will land on PlayStation, then Microsoft’s latest Q4 FY2024 financial results and subsequent earnings call certainly eliminates that. The company has made it clear that it’s doubling down on content and services as Xbox hardware sales saw yet another significant drop of 42% in this quarter.
Why Microsoft needs to bring Xbox games to PlayStation and other platforms
Microsoft’s gaming revenue increased in Q4, thanks to its acquisition of Activision Blizzard. Microsoft’s CFO Amy Hood said that the company expects its content and services revenue to grow but Xbox hardware sales are expected to fall further.
“Our investment in gaming, fundamentally, was to have, I’d say, the right portfolio of both what we love about gaming and always have loved about gaming, which is Xbox and the content for the console, and expand from there so that we have content for everywhere people play games,” said Microsoft CEO Satya Nadella.
“The real goal here is to be able to take a broad set of content to more users in more places, and really build what looks more like, to us, a software annuity and subscription business with enhanced transactions and the ownership of IP,” Hood added.
Nadella highlighted how Microsoft is bringing its IP to “new audiences” in various ways, including but not limited to TV shows, using Fallout as one such example.