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HomeGame GuidesMicrosoft (MSFT) Q3 2023 Outlook Guides Decline in Gaming Revenue

Microsoft (MSFT) Q3 2023 Outlook Guides Decline in Gaming Revenue

The company expects gaming revenue to continue declining in the third quarter after a 13 percent decline in the second quarter.

During Microsoft’s (MSFT) earnings call today, it outlined its performance in Q2 2023, as well as provided guidance for Q3 2023. The information was shared briefly without way more detail, detailing how the company is seeing lower monetization per hour in addition to a 13 percent drop in gaming revenue in Q2.

Other details in the report show a 12 percent decline in Xbox content and services revenue “compared to a strong prior year, with a decline in first-party content and lower monetization in third-party content, partly due to Xbox Game Pass subscriptions.” offset by an increase in Additionally, Xbox hardware revenue declined 13 percent in Q2, with devices revenue declining 39 percent “driven by continued PC market weakness and execution challenges on new product launches.”

As reported by CNBC, shares of Microsoft (MSFT) rose 5 percent in extended trading but “gived up their gains after the software maker issued lower-than-expected quarterly revenue guidance.” Currently, management is calling for $50.5 billion to $51.5 billion in revenue for the next quarter, falling short of analyst expectations of more than $52 billion.

Microsoft (MSFT) stock is up 0.22 percent at $242.04 and showing 0.54 a share today
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Other interesting statements heard during today’s call from CEO Satya Nadella include Nadella saying that AI technology will continue to advance before commenting that “the age of AI is upon us.” This is reflected in figures such as Microsoft’s cloud revenue growing 22 percent year-over-year in its second quarter 2023 report.

For more on how Microsoft is scaling gaming, be sure to read through our previous coverage, including Xbox Game Pass set to hit new subscriber high for Microsoft (MSFT) in Q2 2023 has been, and how Microsoft (MSFT) Q2 2023 Xbox hardware sales will decline by 13 percent. from the previous year’s quarter.

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Morgan is a writer from the frozen wasteland of Maine who enjoys metal music, Kpop, horror and indie games. He is also a Tetris fanatic who is fiercely competitive in games like Tetris 99… and all games in general. But mostly Tetris. You can follow Morgan on Twitter @Author_MShaver,

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