The company said on Tuesday that Xbox content and services revenue for the quarter was down 12%, while Xbox hardware revenue fell 13% compared to the same period a year earlier.
Microsoft said content and services revenue was down “on a strong prior year comparable, with declines in first-party content and lower monetization in third-party content, partially offset by growth in Xbox Game Pass subscriptions”.
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The declines were in line with the company’s previous guidance. In October, Microsoft’s chief financial officer Amy Hood said it was expecting gaming revenue to decline in the low-to-mid teens.
Last week, Microsoft announced plans to lay off approximately 10,000 employees by the end of March. The staff cuts will hit around 4.5% of the US technology giant’s 220,000-person workforce, including some members of its gaming division.
Halo developer 343 Industries was said to have been hit particularly hard by the layoffs, which also reportedly affected some employees at Gears of War studio The Coalition and Bethesda Game Studios.
“Halo and Master Chief are here to stay,” it wrote in a statement published on its social media accounts. “343 Industries will continue to develop Halo now and in the future, including epic stories, multiplayer, and more of what makes Halo great.”