Xbox is becoming less interesting as a console, but its numbers are growing thanks to its flagship franchise

Microsoft reported a remarkable increase in the use of its Xbox Cloud Gaming platform, reaching 140 million hours of streaming in the last quarter. This growth comes despite a 7% decline in Xbox division revenue, presenting a mixed outlook for the company. Although details about player and subscriber engagement are often elusive, the recent investor call provided a glimpse of significant progress.

The Reason for the Growth: Call of Duty

The increase in the popularity of Xbox Cloud Gaming coincides with a 30% growth in PC Game Pass subscribers. This momentum is largely attributable to the release of Call of Duty: Black Ops 6, which arrived on the Game Pass service as a playable title from its launch. Nadella, CEO of Microsoft, highlighted that Black Ops 6 became the best-selling game on Xbox and PlayStation platforms, breaking records with more players at its launch than any other paid title in the series.

However, the challenge persists: Xbox hardware sales experienced a 29% drop, suggesting a growing disinterest in consoles. To counter this trend, Microsoft has been working on a portable gaming device and has implemented marketing campaigns, despite some users’ criticism of its focus on services rather than hardware. The strategy seems to rely on AAA titles to maintain momentum in Cloud Gaming and Game Pass, which becomes a challenge given that the Call of Duty franchise only releases new titles once a year.

In addition to Call of Duty, other games from Activision Blizzard’s catalog, such as Spyro Reignited Trilogy and Crash Bandicoot N. Sane Trilogy, have also contributed to strengthening the service, becoming accessible for cloud streaming for the first time. As Microsoft continues to explore the future of gaming, the combination of hardware and services is emerging as a key strategy in its business development.

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