The Numbers Show Xbox's Current Plan Isn't Working

Gizmodo reports that Xbox is underperforming, with significant declines in hardware sales. Microsoft's quarterly earnings reveal a 2% drop in overall gaming revenue, primarily due to a 22% decrease in Xbox hardware sales. While Game Pass and first-party games saw slight growth, third-party titles are currently propping up the platform. Microsoft anticipates continued decline in the Xbox brand, citing a lack of significant first-party releases. Recent releases like Ninja Gaiden 4, The Outer Worlds 2, and The Keeper haven't reversed this trend. Price increases for both consoles and Game Pass subscriptions have likely contributed to the brand's struggles. Microsoft is focusing more on its cloud and AI services, which show substantial growth. The ROG Xbox Ally X handheld offers improvements but doesn't meet expectations for a true console experience. The article suggests that Microsoft needs to re-evaluate its approach to revive the Xbox brand. Gamers are expressing discontent through reduced spending on Xbox products.