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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