Microsoft has announced its earnings results for the quarter ended September 30, 2020 (FY21 Q1), revealing that Xbox gaming revenue increased 22% year-over-year for that period.
Primarily, this was due to a sizeable 30% increase in Xbox content and services revenue driven by strength from third-party sales, Xbox Game Pass subscriptions and first-party titles.
As highlighted by industry analyst Daniel Ahmad, this reportedly marks Microsoft's best Q1 on record for the gaming segment, and the company is on track for another record year in terms of revenue.
Looking ahead, Microsoft noted that it expects "very strong demand" for the Xbox Series X and Xbox Series S beginning this November, driving supply-constrained hardware revenue growth of approx. 40 percent.
Pleased with these results? Give us your thoughts in the comments below.
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[source microsoft.com, via twitter.com]
Comments 3
And Sony fans can’t figure out how Microsoft makes $ off of Game Pass? 😂
Somehow people forgot that even with Game Pass, MS still sell their games. And people buy them.
@KelticDevil It's not just Sony fans. I understand how it makes money but not that it turns a profit YET. Not with all the $1 and other offers for Game Pass and rewards.
A bit of napkin maths suggests that it won't CURRENTLY be turning a profit. However they are banking on the future. Does the estimated $1-2 billion USD Game Pass generates cover ALL Microsoft Game Studios game development and advertising for a year? Not likely.
Aside from that the 22% year on year is impressive, although with COVID this is largely to be expected. If you can't make huge steps in these times you need to rethink or shutter (Stadia should do a Mixer)
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