Microsoft has released it. Latest income report for the quarter ending Dec. 31, less than a week after its announcement Laying off 10,000 people. The tech giant reported a 13 percent drop in gaming revenue, along with an overall decline in revenue.
Hardware and content sales for Xbox lagged compared to the same period last year, with console revenue down 13% and content and services down 12%. Microsoft points out that this compares to a “strong prior year”, pointing to a “decline in first-party content and lower monetization in third-party content”. Microsoft added that this was partially offset by continued growth of Xbox Game Pass.
Microsoft’s latest consoles, the Xbox Series X and Series S, were released in 2020 with initial demand outpacing demand. In the most recent fiscal quarter, revenue from console sales fell 13 percent, with Microsoft citing lower prices during the holidays, as well as an overall decline in the number of consoles sold. .
The report comes after a massive round of 10,000 layoffs across Microsoft’s various divisions, and notes $800 million in severance costs related to the action. Combined with other costs related to downsizing, the layoffs cost Microsoft an estimated $1.2 billion.
Microsoft is still there wants to acquire gaming company Activision-Blizzard. Despite facing regulatory hurdles and antitrust concerns, the $68.7 billion deal.
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