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Microsoft reported in its earnings report today that its gaming revenue declined 7% (5% in constant currency) in the fourth fiscal quarter ended June 30, compared to a year ago.
Xbox content and service revenue declined 6% (4% in constant currency), driven by lower engagement hours and monetization in third-party and first-party content. It was partially offset by growth in Xbox Game Pass subscriptions.
And Microsoft said that Xbox hardware revenue declined 11% (down 8% in constant currency). The overall division that includes gaming saw its operating income slip in the June quarter from $4.8 billion a year ago to $4.6 billion in the most recent quarter, but revenues grew from $14.1 billion a year ago to $14.3 billion.
The More Personal Computing division includes gaming, including Xbox hardware and Xbox content and services, Xbox Game Pass and other subscriptions, video games, third-party video game royalties, cloud services and advertising.
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