Xbox Predicts 'Hardware Decline' Despite Huge Revenue Boost From ActiBlizz

Microsoft's latest earnings report has been an eye-opening one, with its gaming division posting huge revenue boosts - propelling the sector to Microsoft's third largest business within the company. While much of that is attributed to the acquisition of Activision Blizzard, one area that doesn't seem to be growing so fast is Xbox hardware.

As pointed out by The Verge, Xbox hardware is flatlining somewhat - and the team is even predicting an impending decline for Xbox sales. Microsoft CFO Amy Hood blames "a weaker than expected console market" for slow sales during the Holiday season, while also predicting that Xbox hardware will "decline year-over-year" for the next financial quarter.

Basically, Microsoft is expecting hardware sales to be lower than the same time last year, which is unfortunate if not entirely unpredictable. Last year didn't always make for the most positive reading when it came to Xbox sales, with European hardware sales seemingly struggling in 2023.

Thankfully, the rest of Microsoft's gaming division is looking very healthy indeed - as we've already spoken about here at Pure Xbox. Content and services revenue is on the up, and the purchase of Activision Blizzard is helping Microsoft cement its gaming division as one of the strongest in the industry.

Is Xbox really pivoting away from hardware at this stage? Tell us what you make of these comments down below.