Xboxhas recorded a 13% loss of revenue for Q2 when compared to the same period of the previous fiscal year. The Microsoft console has been subject to criticism for its lack of big exclusives in comparison to its biggest competitor, PlayStation.Xboxhas largely relied on smaller titles likeImmortalityandPentimentto carry it through 2022 in the face of delays for heavy hitters likeStarfieldandRedfall.
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The most concerning factor in the report is the fact that Xbox hardware revenue tanked by 13%, but this is unsurprising in light of the fact that the company had no big first-party exclusives for its gaming platform like it did in the same period of 2021, which saw the release ofHalo InfiniteandForza Horizon 5.Microsoft doesn’t seem to be expecting any improvements in the next quarter but could see a substantial increase in revenue with the release of games likeStarfieldandRedfall, which are scheduled to release this year. That said, neither of these big games has a solid release date as yet.Redfallis rumored to be getting a release dateat the upcoming Xbox and Bethesda Developer Direct event, whileStarfieldwill have its own separate showcase event.
Microsoft attempted to woo thrifty holiday shoppers by dropping the price of its Xbox Series S, but this seems to have done little to support overall hardware sales. Sony, on the other hand, had a strong year with hits likeHorizon: Forbidden WestandGod of War Ragnarokdrawing players to the PlayStation camp.Starfieldwill likely be a game-changerin the year to come as one of the most anticipated games of 2023 and an Xbox console exclusive.
It should not be forgotten thatMicrosoft is attempting to acquire Activision Blizzardat an eye-watering price tag of over $68 billion. This would bring some coveted franchises likeDiablo, Warcraft,andCall of Dutyinto theXboxstable, but the deal has been scuppered by various lawsuits in spite of various concessions offered up by Microsoft, including a 10-year licensing deal to keep the massively popularCall of Dutyfranchise on PlayStation consoles. Microsoft has also committed to bringingCall of Dutyto Nintendo’s Switch platform if the acquisition goes through.
