New Delhi, Jul 27 (IANS): The craze for gaming on Xbox consoles is diminishing as Microsoft now expects revenue to decline in the low to mid-single digits, driven by declines in first-party gaming content on Xbox.

In its June quarter, gaming revenue declined 7 per cent and 5 per cent in constant currency, in line with expectations.

"Xbox hardware revenue declined 11 per cent and 8 per cent in constant currency," informed Amy Hood, Executive Vice President and CFO at Microsoft.

"Xbox content and services revenue declined 6 per cent and 4 per cent in constant currency, driven by lower engagement hours and monetisation in third-party and first-party content, partially offset by growth in Xbox Game Pass subscriptions," Hood told analyst during the quarterly earnings call late on Tuesday.

Microsoft Chairman and CEO Satya Nadella said that with Xbox Cloud Gaming, the company is bringing games to new endpoints.

"Players now can stream Xbox games on Samsung Smart TVs. And we partnered with Epic Games to make Fortnite available for free via the browser. Over four million people have streamed the game to date, including over one million who were new to our ecosystem," he informed.

Microsoft's Xbox Game Pass subscription service includes access to hundreds of games, and Xbox Series S is the most affordable next-generation console.

"We sold more consoles live to date than any previous generation of Xbox and have been the market leader in North America for three quarters in a row amongst next-gen consoles," Nadella added.