Microsoft has now reported its latest financial results revealing that for FY23 Q3, there was a dip in gaming revenues, with a steep decline in Xbox hardware revenue.According to Microsoft, overall, Xbox gaming revenue was down 4% year-over-year. This was driven by a big decline in hardware revenue, which was down 30% compared to the previous year. Despite this, there has been growth in Xbox content and services revenue which was up 3% year-over-year, which Microsoft notes is largely down to an increase in Xbox Game Pass subscriptions. Xbox FY23 Q3 gaming revenue down 4%”Xbox hardware revenue declined 30% on a prior year comparable that benefited from an increased console supply,” Microsoft said in its report, suggesting the company experiences supply issues this quarter.Providing additional comment during an accompanying earnings call, Microsoft CEO Satya Nadella revealed that Microsoft set “third quarter records for monthly active users and monthly active devices” and that “revenue from subscriptions reached nearly $1 billion this quarter.” Nadella also noted that Microsoft had “surpassed 500 million lifetime unique users across our first-party titles.”Microsoft expects gaming revenue growth “in the mid-to-high single digits” in Q4. It also expects Xbox content services revenue growth “in the low to mid-teens,” which will be driven by third-party and first-party content as well as Game Pass.
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