Microsoft has released its latest financial report giving us a glimpse of how the company has done in Q3 2024, and for us in gaming a look at how Xbox specifically is doing.

In the overall grand scheme of things Xbox revenue is up 51%. However this is somewhat misleading as it includes Activison Blizzard which raised the revenue by 55%, which means if you remove Activision from the equation Xbox revenue actually fell 4%. Furthermore because of things like integration, transaction costs and other expenses Activision Blizzard actually had an overall operation loss of $380 million.

On the hardware side of things Xbox revenue dipped 31%. Of course Microsoft attributed this to lower sales of the consoles.

Xbox also announced 34 million Game Pass subscribers which includes Game Pass Core subscribers. The service is definitely having a difficult time gaining new subscriptions at the moment. It is likely because of this that Xbox has started to ship some games onto its rival platforms. How that effects financials moving forward and if it will continue is anyones guess.

With next month’s Hellblade 2 being the first Xbox Game Studios launch of the year we will see what kind of impact that has on the business, but it’s clear at the moment that Xbox is struggling based on today’s report.