In the past, console sales trends like these would have been the sign of a hardware maker's wider struggles to stay afloat in the gaming business. However, in today's gaming market, Microsoft is in a place where console sales are not strictly required for overall success.

Sales of Xbox hardware continue to shrink as the console’s latest iteration enters its fourth year on shelves. Hardware revenue for the Xbox division was down 31% in the most recent quarter due to lower sales. That follows a year-over-year drop of 30% in the same quarter in 2023.

Microsoft made $61.86 billion in revenue during the first three months of 2024, up 17%, with a net income of $21.9 billion, beating analysts' estimates.

The company shelled out nearly $11 billion for property and equipment in the third quarter — 66% more than it spent in the same period a year ago.