Game revenues increased, although Xbox One sales fell!
Microsoft seems to achieve what it wants on the console side. Although Xbox One sales declined in the last quarter, game revenues increased significantly. Here are the details.
As it is known, Microsoft follows a different strategy on the console side. Phil Spencer, the head of Xbox, is a name that aims to acquire more service subscribers instead of selling many consoles. As a matter of fact, he often expresses this situation in his recent interviews.
The xCloud technology that Microsoft is already working on is the biggest proof that the company attaches importance to service subscriptions rather than the number of consoles sold.
According to the last fiscal quarter reports, Microsoft got what it wanted. According to the financial quarter reports covering the period from 1 July to 30 September, there was a significant increase in game revenues on Xbox.
Xbox One sales decline, Game Pass continues to shine
Overall, it is observed that the sales of the Xbox One fell 27 percent this quarter. Of course, in this case, the fact that the new generation consoles will be released in November also has an important share.
Despite the decline in console sales, Microsoft saw an overall increase in revenues in the gaming segment. Revenues increased by 22 percent compared to the previous fiscal quarter. It was stated that Microsoft’s service subscriptions had an important share in this increase. It was also underlined that the revenues increased by 30 percent only in service subscriptions.
It seems that the next generation of Microsoft will earn a lot more money through services. Of course we will still wait and see.