Microsoft reports a quarter with improved revenue, but direct console sales have progressively fallen while making way for Xbox Series X.
Microsoft has published its revenue report for the last quarter of 2019, a document that reflects the continued decline in console sales of the company's current generation of consoles, Xbox One; but that also experiences a very significant rise in the number of active subscriptions, where Xbox Game Pass stands out.
Xbox One console sales fall; new user record on Xbox Live
In total, Microsoft as a company has reported $ 36.9 billion in direct revenue, up 14% year-on-year, with net profits of $ 11.6 billion; 35% better than a year ago.
If you look at the department led by Phil Spencer, Microsoft's gaming segment, the portion is estimated at $ 3.3 billion in revenue, $ 905 million less than in the same period last year (-21%). Microsoft attributes this setback directly to the hardware, that is, Xbox One, which faces its last calendar year as a protagonist for the company in a market that already thinks of Xbox Series X.
Xbox Series X, the next Microsoft console; for sale at Christmas 2020
On the other hand, revenues from content and services have fallen by 11%, specifically $ 295 million. The fall, according to fencing, is due to the fact that the last quarter of 2018 was marked by a success called Red Dead Redemption 2, which contributed more revenue than many other triple A games together.
But not everything is bad news; In fact, in the long term there is consensus in the analysts' criteria: the growth of subscriptions will make more loyal users and, inevitably, more consumption. Therefore, more income. According to Redmond's own company, Xbox Game Pass subscribers have more than doubled just this last quarter. In Europe, the promotion of three months of service for one euro is again active.
Finally, although Microsoft has refused to report specific data of active members on Xbox Live (the last official data, of 2019, was 65 million players), it has confirmed that a new record has been reached. Therefore, that figure is surely more than 65 million members.
