Microsoft Corp. this month price cut the Xbox Series X to under $400 in a new holiday promotion to spur sales.
This month, the Xbox Series X sells at $399.99, down from the $499.99 MSRP.
Demand for the Xbox Series X has tapered compared to rival consoles from Sony Corp. and Nintendo Co., Ltd. However, its Xbox Game Pass service has held steady demand as a leading game subscription and cloud service for Xbox consoles and PC.
In Q1, the More Personal Computing division, which includes the Xbox business, held $13.67 billion in revenue. Gaming revenue increased nine percent.
Xbox content and services revenue increased 13 percent due to growth in third-party content and Xbox Game Pass.
Finally, Xbox hardware revenue declined seven percent from one year ago.