Xbox consoles were undersold in the final quarter of 2023, and Microsoft CFO Amy Hood says hardware sales will continue to decline over the next few years. This announcement follows news of Xbox’s impressive software and content sales despite recent controversy over mass layoffs earlier this year.
Hardware sales may decline in several years
Although Xbox found success with the Xbox 360, it would eventually be overtaken by PlayStation, and PlayStation would continue to have a large lead in market share throughout the eighth console generation and into the ninth generation. Despite the decline in hardware sales, Xbox has managed to maintain its strong grip on software and content, which has seemingly been tightened thanks to big, expensive acquisitions like ZeniMax (Bethesda) and Activision Blizzard, which includes mobile gaming giant King.
According to Amy Hood’s comments, Xbox’s console revenue is expected to decline year over year, The Verge reported. Despite Microsoft’s new status as a $3 trillion company, hardware sales are down overall; Xbox consoles in particular sold less than expected during the 2023 holiday season. Discussing the platform’s weak sales figures last year, Hood points out that the console market is weaker than expected, while predicting that revenue from Xbox hardware will decrease over time.