As PC gaming and more so mobile gaming takes off console gaming is starting to feel the effects of a consumer switch to new gaming platforms with Microsoft reporting that in the last quarter 2022 sales of the Xbox were down 7% year-on-year, with declines in revenue from both hardware (down 11%) and content and services (down 6%).
Recently the big gaming Company cut a deal with Samsung to get their Game Pass games in front of millions of consumers who own a current model Samsung TV, this is expected to grow both PC and mobile gaming in Australia generation millions in revenue for Microsoft as users look for high performance TV and monitor display screens.
Currently both Microsoft and Sony’s consoles are in short supply partially due to global supply chain problems.
Game Industry Biz claims that the fall is largely attributable to economic and supply chain conditions that are global in nature.
The 11% decline in hardware revenues, in particular, is very specific to the current climate, rather than being indicative of a deeper problem.
They claim that Microsoft is a little more exposed to demand-side issues at this point simply because the Xbox Series S has much better availability.
On the software front God of War Ragnarok was one of only three major releases Sony delivered this year Microsoft has none.
While the supply chain issues remain a source of frustration the more concerning numbers, are the lower levels of engagement and monetisation Microsoft reported.
While Game Pass, is continuing to grow its subscription numbers, the 6% dip in content and services revenue arguably stands as quantifiable evidence of the common claim that 2022 is simply a weak year for game releases.
This is something that many commentators and consumers have been saying since the start of the year and was amplified further when publisher showcases in late spring confirmed that several more major titles have slipped to 2023.
Elden Ring is the only real blockbuster we’ve had thus far.
Microsoft’s failure to release new games is a consequence of the firm’s ongoing struggle to bring its first party and platform exclusive development pipeline up to scratch after years of neglect claims GIB.
They claim that the problem is industry-wide, and this drop in engagement is likely to be reflected across 2022’s numbers from many of the industry’s biggest companies.
Microsoft’s numbers do carry a warning for how 2022 is going to shape up.
Many companies are going to post tough figures this year reports GIB.
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