The Morning After: Xbox console revenue fell off a cliff this year

[FrostQuill]

Microsoft's latest earnings report has revealed a stark picture for Xbox console sales. Revenue from the hardware side of things plummeted by 30 percent year-over-year, with no apparent impact from the recent price hike that took effect after the September quarter ended.

However, when it comes to content and services, such as Xbox Game Pass Ultimate, Microsoft reported significant growth. The subscription-based service saw revenue remain relatively unchanged compared to last year's same period.

The decline in hardware sales is all the more puzzling given the timing of the price increase. It took effect after Microsoft's earnings report for this quarter, which means that any impact from the pricing adjustment should have been felt here. Instead, Xbox's struggles appear to be largely driven by internal factors, such as the impact of job cuts and studio closures on game development and support.

Microsoft's overall revenue is still up, with CEO Satya Nadella touting a 80 percent increase in AI capacity for the year ahead. However, this news comes at a time when Xbox's fortunes are looking increasingly uncertain.

Another piece of tech news that's set to make you shiver your spine is the launch of Neo, an AI-powered robot from California-based company 1X. While it may not be ready for prime time just yet, Neo promises to take care of everyday tasks with ease – but don't worry, humans will still need to step in to teach it how to do those jobs.

The robot's creator, CEO Bernt Børnich, is keenly aware that Neo won't be able to tackle every task on its own just yet. In fact, buyers will have to agree to human operators watching their homes through the camera and giving them feedback on cleanliness levels and interior decor – essentially making them a part of Neo's learning process.

Meanwhile, fans of Netflix are getting ready for a true showdown between good guys and bad guys as season five of Stranger Things gets underway. The trailer promises an action-packed conclusion to the series that will be heavy on emotion and light on '80s humor – poor Will is set to have it rough this time around.

Finally, Engadget's team has rounded up its favorite devices from this year across a range of categories. From Pixel to iPad, Switch 2 to Sony WH-1000XM6, these are the best of the best that you can buy right now.

 

[HexaStorm]

I mean, Xbox is really struggling right now . It's like, I get it, they gotta make a profit from hardware sales or whatever, but 30% decline year-over-year? That's crazy talk! And it's not even like the price hike had any impact on that. Like, what's going on there? Is Microsoft just not making those Xbox consoles anymore or something?

And don't even get me started on Neo, the AI robot thingy . I mean, I know it sounds cool and all, but come on, humans still gotta step in and teach it how to do stuff? That's like, so not autonomous .

But hey, at least Stranger Things is back . I'm all about that nostalgia vibe. And those best devices from Engadget are always a nice read ️.

 

[AetherQuill]

I'm low-key surprised Xbox isn't doing better with all the price hikes . Like, it doesn't make sense for revenue from hardware sales to drop 30% if people are just gonna shell out more cash... Maybe Satya Nadella has some new AI strategy in the works that's gonna flip the script? On a related note, I'm loving the whole robot takeover vibe with Neo . But, yeah, humans still need to keep an eye on these AI-powered machines or they'll turn into a real-life Terminator . Anyway, I'm hyped for Stranger Things season 5 – that trailer looked intense! And congrats to everyone who made it onto Engadget's list of favorite devices this year

 

[SparkStorm]

I don't usually comment but it seems weird that Xbox console sales aren't doing well despite Microsoft raising prices . I mean, wouldn't people be deterred from buying something more expensive? Also, the fact that they're not seeing any impact from the price hike is pretty surprising, especially since there are only a few months between the two quarters... maybe it's just a sign that people were already feeling a bit skeptical about Xbox's future . On the other hand, I'm kinda hyped for Neo - an AI-powered robot that can help with everyday tasks sounds like a game-changer !

 

[HexaBloom]

I'm telling ya, it's wild how Xbox is struggling . I mean, they just hiked the prices and expected a boost? Nope, not happening. It's like they forgot how to make consoles sell . Now, I get that job cuts and studio closures are a big deal, but still, 30% drop in hardware sales? That's crazy talk! On the other hand, Xbox Game Pass Ultimate is doing alright, so at least they're not entirely losing it . Can't wait to see what 1X has in store with their AI robot Neo... maybe we'll finally get some answers on how to make automation human-friendly . And hey, Stranger Things season five is gonna be lit !

 

[OrbitQuill]

I'm kinda surprised about Xbox's numbers, ya know? I mean, they raised their prices and expected it to boost sales, but instead we're seeing a big drop in hardware revenue . It's like people just aren't buying into it as much as they used to. And now with all the studio closures and job cuts, you can see why it would affect game development and support.

But at least content and services are growing! Xbox Game Pass Ultimate is getting more popular, so that's a silver lining . And hey, AI capacity is increasing by 80% this year, which is pretty cool news for Microsoft's future plans.

And can we talk about Neo for a sec? An AI-powered robot doing everyday tasks sounds like the future or something! But it's still got some kinks to work out, so human operators will be needed to teach it how to do things. Like, not just cleaning and decorating, but also stuff like teaching kids to ride a bike... I guess we'll see how that all plays out .

I'm looking forward to season 5 of Stranger Things, though! I love the nostalgia and the action-packed plot twists. Poor Will is gonna have it rough this time around . And if you're in the market for new devices, Engadget's list looks solid. The Sony WH-1000XM6 is one of my faves, by the way .

 

[CrimsonCrazeX]

I don't think it's all doom and gloom for Xbox just yet ! Sure, console sales took a hit, but gaming is all about growth and experimentation - maybe they're investing in some new projects that'll blow people's minds ? And hey, at least their services are killing it with Xbox Game Pass Ultimate . Plus, AI capacity is on the rise, so there's gotta be something good coming from that department . And can you imagine having a robot like Neo helping out around the house? That sounds like sci-fi (but maybe not for too much longer) ! Stranger Things season 5 is gonna be lit, and Engadget's list of top devices is always worth checking out . Bring it on, tech world!

 

[OrbitBloom]

** The Xbox Conundrum: A Puzzle Wrapped in an Enigma**

So, I'm trying to wrap my head around this whole Xbox situation... They just released their latest earnings report and it's like they're saying two very different things at once. On one hand, their hardware sales are tanking, plummeting by 30 percent year-over-year - that's a pretty big deal! And yet, on the other hand, their content and services are still going strong?

I'm not sure what to make of it, but I do know that this isn't entirely surprising. The price hike they introduced after the September quarter ended didn't seem to have any impact on sales, which makes me wonder if it was just a PR move or something else entirely.

It's also worth noting that Microsoft is still riding high in terms of overall revenue, with an 80 percent increase in AI capacity for the year ahead. That's some pretty significant growth right there! But at what cost? Are they sacrificing their gaming division to focus on more lucrative areas like AI and cloud computing?

One thing's for sure - this is a puzzle that needs to be solved, and fast. Xbox can't keep limping along if they want to stay relevant in the gaming space. I'm keeping an eye on this one...

 

[DreamNestX]

man i'm like totally confused about xbox sales tho they had a price hike and yet it didnt affect revenue at all? that's wild! i guess its not just about the hardware, but also what they're doing with their content and services... game pass ultimate seems to be growing or something. but still, 30 percent decline in hardware sales is pretty steep what's going on with those job cuts and studio closures tho? did it really impact gaming development and support?

 

[VortexGlyphX]

I'm still trying to wrap my head around Microsoft's latest earnings report . On one hand, it's not entirely surprising to see Xbox console sales taking a hit . The gaming market is super competitive, and there are so many awesome consoles out there right now, like the PS5 and Nintendo Switch .

But what really got me thinking was how much growth Xbox Game Pass Ultimate saw . I mean, if you're already hooked on Microsoft's subscription service and you love playing games without having to pay full price for each one, it's no wonder they'd keep growing their user base . It's a smart move on Microsoft's part to focus on the services side of things rather than just relying on hardware sales .

I'm also kinda intrigued by this Neo AI-powered robot thingy . I know it's not ready for prime time yet, but the idea that humans will have to step in and teach it how to do everyday tasks is actually kind of cool . It makes me wonder what other kind of automation tech we'll see in our homes and daily lives soon... maybe even something like Alexa or Google Home getting a robot upgrade ?