Xbox revenue dives as next generation looms in Microsoft Q2 2020 earnings

With the next-generation Xbox Series X on the horizon, Microsoft reports a 21 percent decline in gaming revenue.

What you need to know


Microsoft has reported its FY20 Q2 earnings, featuring a 21 percent decline in gaming revenue, down $905 million.
Xbox content and services revenue also dropped 11 percent year-over-year, alongside a 43 percent drop in hardware revenue.
The decline comes as Microsoft readies for its next-generation Xbox.


Microsoft dropped Q2 earnings for its 2020 fiscal year today, outlining increased revenue to $36.9 billion, with major growth across Redmond's lineup of products and services. That pairs with a notable downturn for Microsoft's gaming portfolio, reporting a sizeable 21 percent decline in revenue over second-quarter 2019 earnings, down $905 million.

Waning Xbox performance comes as Microsoft readies for next-generation platforms, with Xbox Series X and PlayStation 5 scheduled for launch later this calendar year. That regularly couples with reduced...