Home News The SportsRush Xbox faces decline in hardware revenue while 6% profiting from its services: How is it better than PlayStation?

Xbox faces decline in hardware revenue while 6% profiting from its services: How is it better than PlayStation?

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Xbox FY23 Q4 financial report has been revealed by Microsoft recently and highlighted the loss in hardware sales. On the brighter side, the gaming organization has seen an increase in service sales which might grow soon.

When comparing PlayStation and Xbox hardware sales, Sony’s console is supposedly performing better at the moment. However, that doesn’t mean Microsoft’s gaming platform is doing bad either. Both these consoles have faced major sales over the years, despite PlayStation facing stock issues initially.

While many may debate PlayStation is doing better than its rival, in reality, they do have some competition coming ahead. With the upcoming release of Starfield and Spider-Man 2, the competition between the two is likely to face more contest.

Comparison between Xbox and PlayStation’s profit margins and possible increase for both

Microsoft recently revealed its FY23 Q4 reports and detailed everything that happened within the company. In terms of gaming, the organization profited 6% by selling services while being on a loss of 13% when selling Xbox.

During that time Sony’s PlayStation 5 consoles were getting over their lack of production and handing over their products in 2023. However, that doesn’t mean that PlayStation won the overall race against its competitor.

While losses in hardware sales seem bad for Xbox, in reality, it isn’t. Ever since the release of PlayStation 5 in 2020, it soon faced a lack of product for selling. On the contrary, Xbox was having smooth sailing when selling their product and restocking them through the years.

However, ever during this tenure, many PlayStation fans were waiting to buy their favorite console. Thus when the company finally recovered from its lack of stock, it saw an immediate spike in hardware sales like no other.

On the other end, according o PlayStation’s FY21-22 reports, the organization faced a trending loss throughout the year which was going downhill. However, for Xbox, this sale trend turned out to be even more profitable than before with this year’s report.

With the upcoming major releases of two exclusives Starfield and Spider-Man 2, for each platform, the story might shift. Both these games are highly in demand and are likely to sell more later this year.

While Sony’s approach determined individual sales of the franchise from Insomniac. On the other hand, Starfield will be available on Xbox Gamepass which would increase the sales of the subscription system. Additionally, the gameplay length of Starfield is long, which would impact the long run of the subscription system from Microsoft.

While all the answers will come to unfold with the financial year reports from both parties, this is where we conclude this article. If you liked reading out content, you check out similar gaming articles by clicking here.

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