Microsoft Reports Financial Results for Q4 2023
Hardware Sales Decrease, but Services and Xbox Games Revenues Increase
Microsoft recently released its financial results for the fourth and final fiscal quarter of 2023, revealing a slight increase in revenues for Xbox services and games, but a small decline in gaming hardware sales.
Specifically, Xbox hardware revenues decreased by 13% in the fourth quarter, indicating that Microsoft is likely still facing challenges in terms of hardware supplies and weaker demand for its Xbox Series X|S consoles.
However, this somewhat negative outcome was more than offset by the revenues from Xbox content and services, including Xbox Game Pass, which increased by five percent. Overall gaming revenues also grew by 1%. This suggests that Xbox Game Pass has experienced year-over-year growth, although Microsoft has not provided updated subscriber numbers.
It is worth noting that Microsoft previously stated that Game Pass had reached 25 million subscribers in January 2022, but no subscriber figures have been updated for over 18 months. Additionally, Xbox Game Pass and Xbox Series X prices have recently been increased in Italy. Furthermore, a new subscription called Xbox Game Pass Core, set to replace Live Gold, will be launched in September 2023.
Microsoft’s Overall Performance
Looking at Microsoft as a whole, the company achieved revenues of $56.2 billion and a net income of $20.1 billion during the fourth quarter. Revenues grew by 8%, and net income increased by 20%.
Tom Warren from The Verge also mentioned that Windows OEM revenues, the price manufacturers pay Microsoft to install Windows on laptops and PCs, have significantly decreased for the entire fiscal year or four consecutive quarters. In the fourth quarter, Windows OEM revenues decreased by 12%, primarily driven by the PC market according to Microsoft.
Key Financial Highlights:
- Windows OEM revenue down 12%
- Devices revenue down 20%
- Gaming revenue up 1%
- Xbox content and services revenue up 5%
- Xbox hardware revenue down 13%
For more details on Microsoft’s Q4 2023 earnings, click here.
Microsoft’s Q4 2023 (fiscal) earnings:
• Windows OEM revenue down 12%
•Devices revenue down 20%
•Gaming revenue up 1%
•Xbox content + services rev up 5%
•Xbox hardware rev down 13%
details here: https://t.co/R50iI2CsJt
— Tom Warren (@tomwarren) July 25, 2023