Microsoft has released its Q3 Fiscal Year 2023 earnings report and it has been revealed that Xbox Hardware sales are down by 30 percent and Microsoft’s gaming revenue was down overall by 4 percent.

Despite this, Microsoft says that the drop in console sales was less to do with Xbox hardware selling badly and more to do with them selling exceedingly well last year due to an increased supply of consoles with the end of the covid pandemic.

Second Best Q3 For Xbox Revenue

The report also said that “Xbox Content and Services Revenue” was up by 3 percent thanks to the growth of the Xbox Game Pass. In fact, Independent analyst DomsPlaying found that this was the company’s “second best Q3 for Xbox revenue.”

Microsoft CEO Satya Nadella similarly said to VGC that Microsoft set records in Xbox Revenue in this third quarter.

“We set third-quarter records for monthly active users and monthly active devices,” he said. “Across our content and services business, we’re delivering on our commitment to offering gamers more ways to experience the games they love, while revenue from subscriptions reached nearly $1 billion this quarter”.

He also notes that Xbox brought PC Gamepass to 40 new countries in the past year which nearly doubles the markets that it’s available in.

Malaysia was one of these markets where the service has become quite popular thanks to the affordable subscription price. The Xbox Series X|S however is not available in Malaysia or other regions in Southeast Asia aside from Singapore. .

“Great content remains the flywheel behind our growth,” says Nadella. “We have now surpassed 500 million lifetime unique users across our first-party titles, and have never been more excited about our pipeline of games, including the fourth-quarter launches of Minecraft Legends and Redfall.