Is Xbox declining?

beyondgames.biz - Xbox Revenue In Decline After Major Titles Pushed To 2023

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Xbox earnings are down 7 percent year-on-year in Microsofts recently announced quarterly earnings report. This includes an 11 percent dip in hardware sales and a 6 percent drop in content and services. While this is by no means a huge loss it’s certainly a preview of a steady decline in console and game sales that will continue throughout the remainder of the year as there are no major games slated for release on Xbox until 2023.

Not a great year for games

Thus far, 2022 has been a poor year for game releases. Other than Elden Rings and PlayStation exclusive Horizon Forbidden West, there haven’t been any big hits this year. God of War Ragnarök, which hits PlayStation in November, is the console’s only other major title for the year. The popular action-adventure game series is also getting a live-action adaptation thanks to Prime Video. Of course, gamers spent far more time gaming during the pandemic so it was only a matter of time before engagement numbers dropped. The sparse game lineup is also due to the pandemic, as developers are struggling to get back up to speed since early pandemic lockdowns. However, this year’s lack of major titles opens up the door for games from smaller studios to gain recognition. Titles like Callisto Protocol and Evil West will likely reach a larger audience upon release because of the lack of AAA titles. Additionally, the 2023 game lineup will likely mean sales numbers go way up next year.

Ongoing issues

Both Xbox and PlayStation sales are being affected by supply chain issues. With more consumers demanding next-gen consoles and fewer supplies thanks to shutdowns during the pandemic, there simply aren’t enough consoles to go around. The lack of supply is the most significant contributor to the 11 percent dip in console sales. However, despite these issues, the PS5 and Xbox Series S are vastly outselling their predecessors. With sales projected to grow next year, it makes sense that Xbox is continuing to keep their console healthy, such as with the recent update, which reduces the system startup time by 5 seconds.

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