Microsoft Reports Decline in Its Gaming Division Revenues

Microsoft has released its financial results for the second quarter of 2023, revealing a slight growth in revenues, a significant decline in earnings from Windows OEM licenses, and a decrease in its gaming segment.

According to the report, Microsoft's revenue rose by 2% compared to the same quarter last year reaching $52.7 billion. The company's operating income was $20.4 billion – a decrease of 8% from Q2 2022, and net income decreased by 12% to $16.4 billion.

Amid a global decline in demand for PCs, revenue from Microsoft's More Personal Computing division declined by 19% to $14.2 billion. The most notable drop was seen in Windows OEM licenses – revenue from them fell by 39%. Microsoft predicts that the situation in the PC market will not improve and in the third quarter the figures in this segment will again fall by 30-40%. The devices revenue also dropped by 39%.

Microsoft's gaming segment saw a decline in revenue of 13%, with Xbox content and services falling by 12%. The decrease in the gaming division was attributed to a lack of content from internal and third-party studios compared to the second quarter of 2022.

Despite this, the company's Game Pass service reached a new record, according to Microsoft, although the number of users was not disclosed. As per January 2022 data, the service had an audience of 25 million people. The monthly active users of Game Pass also hit a record of 120 million in this quarter.

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