Microsoft Q4 Earnings Reveal Decline In Xbox Hardware Revenue, While Sony's PlayStation Sales Soar

Microsoft Corporation's (NASDAQ: MSFT) Xbox reported a 13% decline in hardware revenue for the fourth quarter and the full fiscal year ending June 30 due to lower console sales compared to 2022.

Yet gaming revenue increased by $36 million, driven by growth in Xbox content and services like Game Pass and third-party content, IGN reports. 

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Microsoft has not provided specific sales figures, making it difficult to directly compare Xbox hardware revenue.

Nevertheless, it is evident that after experiencing a surge in sales attributed to relaxed supply chains last year, the last few quarters have seen a decline in hardware sales, with a 13% decrease in the second quarter and a further 30% decrease in the third. 

Competitor Sony Group Corporation's (NYSE: SONY) PlayStation reported strong hardware sales in the fourth quarter, with sales three times higher year-over-year, reaching a total of 38.4 million units sold.

The contrast between the two gaming giants' performance is remarkable, and this news is part of a larger narrative that Microsoft is struggling to compete with Sony and failing to offer enough to entice gamers to choose Xbox over PlayStation.

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Image credits: Miguel Lagoa on Shutterstock.