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Microsoft reported that Xbox hardware revenue fell 42% year over year in its FY24 fourth quarter, which ended June 30, 2024. That figure measures revenue, not the number of consoles sold; Microsoft’s cited results do not provide a matching unit-sales count. Later Xbox results show further weakness, but they use different measures and periods.
What the 42% figure actually measures
In its July 30, 2024 earnings-call discussion, Microsoft said Xbox hardware revenue decreased 42% year over year in FY24 Q4. On a constant-currency basis, the decrease was 41%. The quarter ended June 30, 2024, so this is a historical quarterly result—not a current sales figure.
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Revenue is the money generated by hardware sales, not a count of consoles shipped or sold to customers. Microsoft’s cited reporting does not give a corresponding unit-sales figure for that quarter. It therefore does not establish that Xbox console sales by volume fell 42%.
Hardware was down while content and services grew
The same FY24 Q4 results showed Xbox content and services revenue rising 61% year over year. Microsoft attributed 58 percentage points of that growth to the net impact of the Activision acquisition. The 61% increase should not be read as 61% organic growth.
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These figures describe different parts of the Xbox business: hardware revenue fell, while content and services revenue rose. They are not contradictory, and neither one alone describes total Xbox performance.
What Microsoft’s later results say
Microsoft’s July 29, 2026 FY26 Q4 release reported a 10% year-over-year decrease in Xbox content and services revenue. Its FY26 Form 10-K reported that Xbox revenue for the full fiscal year fell $1.7 billion, or 7%, attributing the decline to lower content and services and hardware revenue.
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Those later figures provide context for the business trend, but they do not update the FY24 Q4 hardware statistic. The 10% figure is for content and services in one later quarter; the $1.7 billion, or 7%, figure is for Xbox revenue across FY26. Neither is a later measurement of the same hardware-revenue comparison as the 42% result.
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What the reported figures do—and do not—show
- They show: Xbox hardware revenue was down 42% year over year in FY24 Q4, or 41% in constant currency.
- They do not show: a 42% decline in console units sold. No corresponding unit count is provided in the cited results.
- They also show: content and services revenue rose 61% in that quarter, with 58 percentage points of growth attributed to the Activision acquisition.
- They do not establish why: Microsoft’s cited FY24 Q4 figures do not identify a specific cause for the hardware-revenue decline. They do not, by themselves, support attributing it to pricing, competition, demand, or inventory.
Sources
- Microsoft FY24 Q4 earnings release and earnings-call materials (July 30, 2024).
- Microsoft FY26 Q4 earnings release (July 29, 2026) and Microsoft annual reports, including its FY26 Form 10-K.
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