Microsoft had a recent investor call and the news was not so rosy on the gaming front.

Gaming revenue declined 10% (down 8% in constant currency) with Xbox software and services revenue down 3% (down 1% in constant currency)

Microsoft

Of course, this pales in comparison to the below:

Shit balls that is bad. Of course, the Sony fanboys are gloating and Xbox fanboys are making excuses.

As always, it’s something in the middle. The Xbox One has always struggled against the PS4 since Don Mattrick shit the bed at launch. However, Phil Spencer has turned things around, setting up the next generation.

Speaking of next-gen, Microsoft has whipped their dick out and pretty much revealed what is in the works, so a decline in current hardware sales is to be expected.

Microsoft is also shifting their approach, to be more services centric, than hardware first, even though they claim that the Xbox Scarlett will be a force to be reckoned with. Microsoft is concentrating on multiple fronts, hedging their bets on what the future of gaming will be.

With that said, holy shit, a 48% drop is HUUUUUUGE. Hope Spencer and company have plan in place, because they have their work cut out for them.

[Source: Microsoft]