Xbox earns $3.3 billion during Holiday 2019 quarter, consoles down 43%

Today Microsoft announced its Q2'20 earnings for the three-month period ended December 31, 2019, showing dips in overall Xbox segment earnings.

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Xbox gaming, services, content, and hardware sales generated $3.327 billion in Q2'20, down 21% year-over-year from Q2'19's massive $4.232 billion. This sizable $905 million drop is due to 2018's megaton launch of Red Dead Redemption 2, which generated millions of game sales both at retail and digitally and helped move Xbox console hardware.

Speaking of Xbox consoles, overall hardware sales of the Xbox One family of systems was down 43% YoY in the holiday quarter. Total content and services revenue is also down 11% YoY, or $295 million, due to the absence of a heavy-hitter like RDR2. Subscription growth is healthy though, and services like Xbox LIVE Gold and Xbox Game Pass are doing tremendously well for the company's overall engagement-driven efforts.

With these numbers, Xbox made up 25% of Microsoft's More Personal Computing segment, which also includes Surface hardware and Windows 10 services and OS sales. In total, Xbox made up roughly 10% of Microsoft's total quarterly earnings.

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