Microsoft has announced its latest earnings results, and this includes reporting on how the Xbox business specifically is performing. The Xbox division saw a 4% overall increase to revenue, reaching $3.61 billion, Windows Central reported.
According to DomsPlaying on Twitter, this is a new all-time record for revenue in a Q1 period (Microsoft’s Q1 ended September 30, 2022) for Xbox, dating back to the inception of Xbox more than two decades ago.
Xbox hardware saw a 13% increase in revenue thanks to ongoing sales of Xbox consoles and accessories. Xbox content and services, however, saw a decline of 3% in revenue. Microsoft said the declines were attributed, in part, to lower first-party and third-party game sales. Microsoft also reported “lower engagement hours” during the period. However, “higher monetization” and growth in Xbox Game Pass subscriptions helped offset the overall declines.
Microsoft did not announce a new Game Pass subscriber number, but CEO Satya Nadella said PC Game Pass specifically saw a 159% increase. Microsoft announced in January 2022 that Game Pass had 25 million subscribers but the company has not updated the figure since then.
Microsoft has a lot of big games coming up, including Starfield, Redfall, and Forza Motorsport in 2023. The deal to buy Activision Blizzard is expected to close before June 30, 2023, and this could also help boost the Xbox division’s bottom line significantly.
Xbox is just one of Microsoft’s many internal divisions. Microsoft as a whole brought in $50.1 billion during the quarter for revenue (+11%), and the company posted a profit of $17.6 billion (-14%). Microsoft just recently laid off about 1,000 employees.
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