Xbox CEO statement after 'brutal' Microsoft earnings call

Xbox CEO Asha Sharma has shared a statement on social media after what's been described online as a "brutal" Microsoft earnings call from an Xbox perspective.

The latest earnings report revealed for Microsoft in its third fiscal quarter ending 31 March, gaming revenue was down seven per cent year-on-year, with Xbox content and services revenue down five per cent and Xbox hardware down a whopping 33 per cent.

However this all comes amid what has been a positive earnings call from Microsoft, which reported $82.9 billion in revenue, up 18 per cent year-on-year, with net income rising 23 per cent to $31.8 billion.

Microsoft's AI business revenue run rate rose a staggering 123 per cent year-on-year to $37 billion with Microsoft Cloud revenue increasing 29 per cent to $54.5 billion.

Following the earnings call, Sharma posted a statement on X / Twitter which said: "While we have made progress expanding the business and our margins, player and revenue growth has not yet met our ambition.

"We know we have work to do to earn every player today and into the future."

During the call itself, Microsoft CEO Satya Nadella said: "The [Xbox] team is recommitting to our core fans and players and shaping the future of play. Last week's Game Pass changes are one example of how we are staying responsive to customer feedback.

"We set new records for monthly Xbox active users in the quarter, as well as game streaming hours."

Sharma's comments specifically were posted in the Xbox Subreddit and gamers have been sharing their thoughts.

One said: "What frustrates me is that the Series S/X generation had everything to be a great one and it actually was until around mid-2023, when the Activision acquisition happened and they decided Xbox was no longer important, that they should go fully multiplatform and that exclusives and console sales no longer mattered. What a disaster, honestly sad."

A second commented: "The fact that they even thought it would meet their expectations overnight is ridiculous. They broke a lot of trust, it's gonna take a lot to mend it."

"Endless growth is unsustainable," a third added.

A fourth said: "People have been entrenched in PlayStation ecosystem during the start of the digital game boom at the beginning of PS4 (because Xbox one was a disaster). Don't want to say it's impossible but to meet Microsoft's profit demands, it is. People won't switch or give Xbox a chance again especially if they get Halo and such on PlayStation."

And a fifth exclaimed: "Exclusives!!"

Elsewhere from Indy100:

• Xbox CEO hints next-gen Project Helix console will cost more than planned - here's why
• Is Xbox back? New logo and vision have gamers 'loving this revival'

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