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Microsoft hardware revenue dips 48% YOY for fourth quarter

Xbox Live reaches 65 million MAUs as subscriptions offset hardware and software declines

Microsoft closed out its fiscal year with year-over-year increases in revenue and income overall, though its gaming segment is beginning to feel the effects of the end of the console generation.

For Q4, Microsoft reported revenue of $33.7 billion, up 12% year-over-year, and net income up 49% year-over-year to $13.2 billion. Operating income was up 20% to $12.4 billion.

The More Personal Computing segment, which includes Gaming, saw revenue up 4% year-over-year to $11.3 billion, though gaming revenue dropped 10% to $2 billion. Xbox software and services revenue was down 3%, but the big highlight for this segment was that Xbox hardware revenue declined 48% year-over-year due to a decrease in console sales volume.

That said, Xbox subscriptions continue to increase, with Xbox Live's MAUs up 14% year-over-year in Q4 to a total of 65 million.

For the full year, Microsoft reported $126 billion in revenue, up 14% year-over-year, and net income of $39.2 billion up 137%. Operating income was at $43 billion, up 23%.

Gaming's contribution to the full-year results was slightly better-looking. More Personal Computing as a segment brought in $46 billion in revenue for the full year, and gaming represented $11.4 billion of that - up 10% year-over-year.

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Rebekah Valentine

Senior Staff Writer

Rebekah arrived at GamesIndustry in 2018 after four years of freelance writing and editing across multiple gaming and tech sites. When she's not recreating video game foods in a real life kitchen, she's happily imagining herself as an Animal Crossing character.