A little over two years into its lifecycle, audiences are already losing interest in the Xbox Series S and X.

According to the tech giant, console hardware sales are down by 30% from the same period last year. To make matters a lot worse, the Game Pass didn't seem to have made a difference. But, you won't see Microsoft worrying about this. Despite the drop in console sales, total revenue and net income for the entire company were up year-over-year by 7% and 9%, respectively.

Still, it's not a good sign for the Xbox arm of Microsoft to lose money, especially if the Xbox content and services revenue, including the Game Pass, only went up by 3%.

Competition in the gaming industry is as fierce as ever, with both the Nintendo Switch and the PlayStation 5 topping sales charts and setting new records in spite of the supply chain disruptions caused by the COVID-19 pandemic.