Xbox’s Multiformat Move to PS5 Seems to Be Working Out Very Well for Microsoft

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It seems that Microsoft‘s strategic shift towards becoming a multi-format publisher is proving successful for them, as their hardware sales are decreasing while software sales are on the rise.

In simple terms, the massive tech giant reported a 5% rise in gaming earnings from last year during the period ending on March 31st. Interestingly, this growth was balanced by a 6% decrease in their hardware sales, primarily due to the Content and Services segment.

Although the hardware presentation was smaller than typical, it’s significant to mention that this figure represents several years of continuous decline.

Regardless, the success of in-house software, such as Bethesda and Activision Blizzard, is thriving for the company. This growth can be attributed to a 8% increase in sales of their software and subscriptions year over year. Primarily, this increase is due to the popularity of Call of Duty and Minecraft.

The Dark Ages, and a remastered edition of The Elder Scrolls IV: Oblivion being released.

And CEO Satya Nadella seems pretty positive about his company’s performance on PS5.

He smiled, saying that at the end of the quarter, we were number one among publishers for pre-orders and pre-installs not just on Xbox but also on the PlayStation Store,”

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“At the close of the quarter, it was us who held the top spot as a publisher in terms of pre-orders and pre-installs, both on Xbox and the PlayStation Store,” he gleamed.

Consequently, Microsoft anticipates continued expansion in their Content and Services sector during the upcoming quarter, while also projecting a drop in hardware sales once more.

It appears that the future for Xbox is gradually shaping up to be characterized by robust sales of multi-format software and a decline in its hardware business. The Game Pass service, without a doubt, plays a role, but Microsoft hasn’t shared an update on its performance for more than a year.

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2025-05-01 09:36