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Xbox leader Asha Sharma says there’s “more demand than consoles available” as Xbox hardware sales dip by 14%
Xbox chief Asha Sharma says demand for consoles exceeds available supply, even as Microsoft reported a 14 per cent year-on-year fall in Xbox hardware sales. The comments present supply constraints as a factor behind weaker sales, while the results also show Xbox revenue edging down two per cent.
Sharma highlighted record performances for Minecraft and World of Warcraft, and double-digit PC revenue growth. Microsoft finance chief Amy Hood said lower third-party content and Xbox Game Pass revenue contributed to the decline, partly offset by first-party content growth; the company also faces ongoing restructuring and expected further job cuts.
In short
- Xbox hardware sales fell 14 per cent year on year.
- Sharma says console demand exceeds available supply.
- Lower Game Pass and third-party content revenue weighed on results.
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The case for
If demand really exceeds supply, limited console availability could explain why hardware sales fell despite continued consumer interest. Sharma’s account is consistent with the reported record performances for Minecraft and World of Warcraft, and with growth in PC revenue, suggesting strength in parts of Xbox’s wider gaming business.
The case against
A 14 per cent fall in hardware sales and lower Xbox revenue may point to weakening performance that supply constraints alone do not explain. Microsoft also cited lower third-party content and Game Pass revenue, so the results support a broader view that changing demand or business pressures contributed to the decline.
Explained simply
Xbox is Microsoft’s gaming business, built around Xbox consoles, games and subscriptions such as Game Pass. Its results can reflect several parts of the business, including console sales, games made by Microsoft and games from other publishers.
Asha Sharma leads Xbox, while Amy Hood is Microsoft’s finance chief. The business also includes major games such as Minecraft and World of Warcraft, as well as gaming on PCs.
Console sales are only one measure of Xbox’s performance: subscription and game revenue also matter. Changes in those areas can affect the results alongside how many consoles are available to buy.