Microsoft has released its Q4 and full-year financial report for the outgoing fiscal year, revealing a mixed bag of results with declines in hardware and flat gaming sales but record-breaking engagement metrics. The earnings report and associated analyst commentary illustrate the story of a transformative year for the tech giant's gaming segment, amidst a challenging global economic environment.
The More Personal Computing segment, which includes Xbox, reported a 4% year-over-year (yoy) decline in Q4 revenue to $13.9 billion. Gaming revenue came in flat with a meager 1% yoy increase, attributable to weak performances from first and third-party content. The segment, while an important part of Microsoft's portfolio, was the lowest revenue generator for the company, outperformed by Productivity and Business Processes ($18.3 billion, up 10% yoy) and Intelligent Cloud ($24 billion, up 15%).
Despite the figures, Xbox content and services revenue increased by 5% year-on-year, boosted by Game Pass' growth and third-party content sales.
