Over the past few years, Microsoft has begun to bring itself back from its last generation of consoles, but this doesn’t mean that they are in the clear. During the current court battle that is taking place between Microsoft and the US Federal Trade Commission, there has been a new 80-page document that has been revealed that provides information on how Microsoft has lost $800 Million in revenue over the past fiscal year and other losses.
What were Microsoft’s forecast and why did they miss it?
Upon release of the 80-page document from Microsoft, it has provided an incredible insight into what is expected internally by Microsoft in their Xbox sales; In the fiscal year of 2023, Xbox was expecting to earn $17 Billion over the fiscal year, but unfortunately, did not meet this expectation and fell just short at $16.2 Billion. Now these numbers are nothing to scoff at since $16.2 Billion is still a lot of money to earn, and being $800 Million short isn’t a big impact for Microsoft, but it still raises a lot of questions.
At this current time, there is no information as to why Microsoft did not meet this target, but during this trial, there may be more information that may be revealed in the future. All of this information helps to coincide with a testimony from the CEO of Xbox Gaming, Phil Spencer, who, when asked the question of whether or not the company was meeting its internal targets Phil Spencer replied, “It is not right now, no”.
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What other information has been revealed by this document?
When revealed this new document has shown us numerous pieces of information that has given us some interesting insight into the inner workings of Microsoft. Another piece of information that has been revealed by this document is the subscriber count for game pass on Xbox; thanks to this document, we can see that Microsoft has currently been achieving a steady growth rate for subscribers for game pass as back in the fiscal year of 2022 they raised their subscribers from 20 Million to over 25 Million and due to this rise there will be a expectation to keep that growth going and aim for potentially 30 Million subscribers.
Due to the release of this document and the way that the court case is going, Microsoft is currently worried about the industry growth rate of consoles; this is why they have attempted to purchase Activision Blizzard to be able to move more into the mobile gaming economy.
Currently, Microsoft is still fighting in this court case, and it is unclear who will come out on top, but every day we are gaining new information in regards to Microsoft and its console; at the moment, there is no way to tell whether or not Microsoft is going downhill or not but thanks to these documents we can see that there is a decline for Xbox hopefully not a permanent one. What do you think about the loss of revenue? Let us know in the comments!
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