Xbox console sales are declining and are continuing a downgrade with no hope of the trends escalating anytime soon for Microsoft’s gaming hardware. As per fiscal reports from IGN and The Verge, the markets have witnessed a drop of 42%. It is making a significant impact on Microsoft’s gaming division. Previously in the third quarter of the fiscal year, the hardware was down to 31%. Contemporary, in the fourth and final quarter of the fiscal year, the markets have witnessed a staggering 42% drop.
However, even though the Xbox console sales are declining, the Xbox’s software revenue and acquisition of Activision Blizzard are frankly doing well. Moreover, the tally of Xbox Game Pass subscribers is continuing to grow, drawing in organic subscribers. Unfortunately, Xbox’s hardware tells a different story.
Xbox is Eccentrically Moving Away From Consoles
Recent activities of Microsoft and Xbox tell that the console is drawing away its focus from consoles and is emphasizing releasing exclusive games to other platforms. Recently, Call of Duty: Modern Warfare 3 was added to Game Pass and the 2020 remaster of the classic cult, Mafia: Definitive Edition will be available to Xbox Game Pass.
Some official reports addressing the issues with Xbox’s hardware sales claim that the Xbox might be scaling back on marketing the consoles in the Middle East, Africa, Europe, and a few more regions. The reason behind this action may be that the console sales are falling behind the sales of PlayStation consoles.
Xbox isn’t the only console that has reported a decline in its hardware sales. Sony and Nintendo are also not generating any sales, especially the Nintendo Switch is seeing the most significant decrease.
Ultimately, Xbox is probably downplaying Series X/S in favor of digital outlets. They are doing so for the Xbox Game Pass and an increase in releases of multiplatform titles.
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