Microsoft Corp. this week said Xbox hardware revenue declined in Q1 due to fewer consoles sold.

In Q1, Microsoft said gaming revenue totaled $2.54 billion, a decline from $2.74 billion one year prior.

In addition, Xbox hardware revenue declined 34 percent due to lower volume of consoles sold.

Finally, Xbox content and services revenue, which includes the Xbox Game Pass service, increased one percent from the year prior.

Microsoft will release Project Scarlett, the successor to the Xbox One, in holiday 2020. It will include a custom AMD processor, GDDR6 memory, and a solid state drive.