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

Xbox rakes in a sizable $3.32 billion in revenues during the Holiday 2019 quarter, but earnings are down YoY thanks to Red Dead Redemption 2 in 2018.

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

Xbox earns $3.3 billion during Holiday 2019 quarter, consoles down 43% 3

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.

Xbox earns $3.3 billion during Holiday 2019 quarter, consoles down 43% 64
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Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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