Xbox Hardware Sales Slips

Microsoft has released its Q3 earnings, and it suggests the current console generation is slowing down and ready for another refresh. Xbox console sales fell by 33% year-over-year, which the company attributes to a simple decrease in sales volume. In other words, people are simply buying fewer Xbox consoles.

However, the news wasn’t too grim for Microsoft. Overall game revenue actually increased by 5% year-over-year, thanks to strong third-party software sales and subscriptions.

The Xbox One is more than six years old now, so the decrease in console sales suggests Microsoft is hitting a saturation point. That’s when console manufacturers tend to eye a new generation, and Microsoft may start to explain its vision for the next Xbox at E3. In the meantime, it introduced the Xbox One S All-Digital Edition, a new SKU of the console that lacks any disc drive and only plays downloaded games.

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