Microsoft’s fourth-quarter earnings were released today and within the data comes exciting news for Xbox, which has continued to grow this quarter. Today’s news shows that gaming revenue is up 11 percent ($356 million) year-over-year, with a high demand for Xbox consoles over content and services.
“Xbox hardware revenue increased 172% driven by higher price and volume of consoles sold due to the Xbox Series X/S launches,” reads the Microsoft earnings report. “Xbox content and services revenue decreased $128 million, or 4%, driven by a decline in third-party titles on a strong prior year comparable that benefitted from stay-at-home scenarios, offset in part by growth in Xbox Game Pass subscriptions and first-party titles.”
With so many at home, the decline in Xbox services makes sense as everyone is scrambling for something to do and to do at home. Some might be invested in streaming platforms more than video games and shift their attention to another platform. Of course, let’s not forget games like Call of Duty Warzone and Fortnite are free to play and continue to dominate in revenue.
During the call, Microsoft CEO Satya Nadella mentioned that the Xbox Series X and Xbox Series S are officially the fastest-selling Xbox consoles ever. “We are all in on games. At E3 last month, we unveiled our biggest games lineup ever, announcing 27 new titles which will all be available to Game Pass subscribers.”
There’s no new data on how Xbox Game PassXbox is doing or how many people are subscribed. The last figure we had is from January of this year when Microsoft revealed the subscription service had 18 million users, up from 15 million in September 2020. Microsoft’s future is packed with exciting games yet to launch with Halo Infinite, Forza Horizon 5, and Microsoft Flight Simulator (launching today) to tide fans over.