Time to take stock of the last fiscal year. Microsoft has put the data on the table with its financial results for the fourth quarter of 2022 and has recorded some revenue of $51.9 billion along with earnings of $16.7 billion. Although the general increase in income is 12%, the truth is that there are several divisions of the company that have not been so lucky.
And it is that in Xbox hardware revenues have experienced a drop of 11%, while revenues from content and services do the same with 6%. For Microsoft, the main reason for the drop in services is due to “less hours of participation and monetization” in exclusive and third-party games. On the other hand, overall title revenue at Microsoft fell 7% from last year.
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To explain these figures, the company relies on four fundamental pillars:
- unfavorable currency exchange.
- Stoppages in product production in China.
- Reduction in advertising expenses.
- The Ukraine war with Russia has resulted in layoffs worth 113 million dollars and the impossibility of collecting debts.
Thanks to The Verge, we have been able to learn that Satya Nadella, CEO of Microsoft, has explained that despite everything, the company has remained a leader in North America for three consecutive quarters in terms of new generation consoles. All in all, the forecast is that revenue from Xbox games, content and services will decrease in the next quarter.
On the other hand, Xbox Cloud Gaming continues to be consolidated as a way of the future after revealing that more than 10 million people have used this format. In fact, Nadella has indicated that over four million people have played Fortnite through the cloud on their systems.
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