The sales of the Xbox console over the last two gaming generations are a far cry from what they were during the halcyon days of the Xbox 360. But with Microsoft's pivot, it's something they aren't particularly concerned about, at least in the immediate future. The tech giant released its Q3 2024 financial results, and based on an earnings call, they indicate that sales for Microsoft hardware (the Xbox Series X|S consoles and Microsoft Surface) are down 31%, numbers very similar to last year's earnings report.

That number may seem dire, as the Xbox lags considerably behind the Nintendo Switch and PlayStation 5, and there's little indication that will ever change. Microsoft CFO Amy Hood spoke in an interview with The Verge that they also anticipated this number to remain consistent, if not dip further for the fourth quarter of 2024. However, Microsoft's substantial increase in other metrics is noteworthy.

Its gaming revenue growth is over 51%, Xbox content and services revenue is up 61%, both year over year. A large part of what plays into this is the blockbuster acquisition of Activision Blizzard, netting large intellectual properties like the Call of Duty franchise and Overwatch 2 under their corporate umbrella. 

What does this news mean for the future of the Xbox? Well, nothing too drastic. Given how Microsoft has prioritized game accessibility and the convenience Game Pass Core offers, the Xbox Series X|S never seemed to be viewed as something to immediately turn the corner for the platform, even if not for a lack of trying. Xbox's catalog of unique software also remained on the thin side, with its highest profile release being Starfield, which has been a considerable success for Bethesda and Xbox. The strong rapport could spell big dividends for the Fallout developer's next big exclusive project, Indiana Jones and The Great Circle, slated for a 2024 release. Other pieces of anticipated properties include Ninja Theory's Senua's Saga: Hellblade II and Obsidian's action RPG Avowed. Speaking of Fallout, the recent success of the television show has driven player engagement in Fallout 76 and Fallout 4. 

The future remains fascinating for Microsoft and its view of the Xbox platforms, as they adjust to a marketplace and demand not necessarily governed by the reliance on exclusive software to generate console sales. This remains the PlayStation tried and true formula, but that has shown to provide its own series of setbacks and fiscal adjustments with the PlayStation 5. They have no intention of giving up on the hardware, as they indicated the next generation of Xbox is already in the works.  

SOURCES: The Verge, Microsoft.com