PREVIEW

Microsoft Sees Gaming Revenue Rise Despite Xbox Console Sales Decline. Microsoft reports a 42% drop in Xbox console sales for the latest financial quarter, continuing a trend seen across major gaming consoles. Despite the decline in hardware sales, Microsoft's gaming revenue increased by 44%, largely due to the acquisition of Activision Blizzard, Eurogamer reports. Without Activision Blizzard, Microsoft's gaming revenue growth would have been around 3%, highlighting the acquisition's significance. The trend of declining console sales affects all major brands, including Xbox, PlayStation, and Nintendo, as their current models age. New models of Xbox, PlayStation 5, and a potential Switch 2 are expected, with Xbox Series X/S turning four in November. Microsoft plans to expand gaming beyond consoles to PCs, smartphones, and cloud platforms, exemplified by Xbox's addition to Amazon Fire TV. The company aims to enhance its Game Pass subscription service, leveraging content and IP ownership for long-term growth. CEO Satya Nadella points to a strong lineup of upcoming game releases, including Call of Duty: Black Ops 6. Amazon's Fallout series has boosted interest in the Fallout game franchise, increasing playtime significantly on Xbox Game Pass. Microsoft focuses on building a software subscription model, emphasizing the value of content distribution and intellectual property.
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