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.
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