Xbox's strategy is paying off for them in every metric except the traditional measurement of success (consoles sales). However, console sales on the whole continue to stall with upgrades driving most sales and peak hardware unit sales having been reached a decade ago (PS2, also the Nintendo Switch now). That's really all there is to say there. Game Pass itself might seriously pierce the zeitgeist once they exit cloud gaming from beta and it'll be interest to see what happens to subscription numbers if there's a cloud only tier that's cheaper (or an ad based tier like Nvidia has).
I do expect Microsoft will see similar year over year decreases with upcoming earnings reports as Microsoft Gaming settles into its size. We're past the additive purchase states and moving into the "this is a long term investment" stages. The new Xbox is going to be smaller than simply Xbox + ABK but Microsoft will have to show how they will grow beyond that in the long term future.
Facebook
Twitter
Instagram