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Microsoftsharedon Tuesday that for FY23 Q3, Xbox gaming revenue was down 4% year-over-year.

This was primarily driven by hardware, which was down 30% year-over-year fromFY22 Q3.

Xbox Series X boot up screen

Nadella added that lifetime unique users for first-party games reached 500 million players.

Microsoft will also be looking to increased revenue with the pending acquisition of Activision Blizzard.

Xbox Cloud Gaming represented by an Xbox controller resting in a soft, fluffy cloud.

Xbox in a field

Xbox Series X Controller

Age of Empires 2: Definitive Edition The Three Kingdoms DLC art

Xbox controller with WD-40

Banjo Kazooie Smash

Indiana Jones and the Great Circle

The Elder Scrolls Online 2025 Daedra battle

Moonlighter 2 key art

Marathon gameplay reveal

U.S. President Donald Trump speaks during the United Nations General Assembly seen on a laptop computer in Hastings on the Hudson, New York, U.S., on Tuesday, Sept. 22. 2020.

Lenovo IdeaPad 5x 2-in-1 deal

Promotional screenshot of characters from Zenless Zone Zero

MSI Claw 8 AI+ propped up next to an ROG Ally X on a table.