Xbox Gaming Revenue Up 9% YoY In Latest Earnings Report

Hardware revenue had a decline of 7%

by Liam Doolan Wed 25th Oct 2023

Microsoft has released its earning results for FY24 Q1 and Xbox's gaming revenue is up by 9% year-over-year.

Xbox's content and revenue services in this latest quarter grew, this time by 13%. It's driven by the growth of the Xbox Game Pass service and first-party content.

Xbox hardware revenue had a decline of 7%. Fortunately, it's not as bad as in the previous quarter (13%). Overall, this is a better quarter for Microsoft's gaming division than the previous one.

In a conference call, Microsoft's CEO Satya Nadella mentioned how Starfield has contributed to the growth of Xbox Game Pass - mentioning how at the launch of this title, a record for the most Game Pass subscriptions ever added on a single day was set (via The Verge).

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For this same period, Microsoft has banked a whopping $56.5 billion in revenue, up 13% year-over-year.

Xbox recently bolstered its Xbox Game Pass offerings with the release of Forza Motorsport and just weeks ago it finalised the acquisition of Activision Blizzard King, welcoming series like Call of Duty and Candy Crush to team green.

What are your thoughts about these latest results? Tell us in the comments.

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[source microsoft.com]

Liam is a news writer and reviewer for Nintendo Life and Pure Xbox. He's been writing about games for more than 15 years and is a lifelong fan of Mario and Master Chief. He's also got a soft spot for Sonic the Hedgehog.

1
OldGamer999
Wed 25th Oct 2023

Xbox now has everything studios and revenue services are up.
They just need to promote and promote and advertise the series consoles with deal after deal etc. sell a console sell a game pass and get another person into the Xbox eco system.

I think it may begin with November Black Friday, rumour of a £399.99 series x for the week of Black Friday in UK.

2
PsBoxSwitchOwner
Wed 25th Oct 2023

Good improvement, hopefully those new subscribers stay subscribed.

But let’s not forget GP price went up during this period. Once again targets for GP growth were missed (tho they are unreasonable high) and various other things didn’t hit targets.

It’s a pity that full reporting isn’t mandatory (not just across gaming) as it’s interesting to look into the finer details of things.

3
Titntin
Wed 25th Oct 2023

Revenues is where is counts, especially for Microsoft's future Roadmap. Might not match their aspirations, but this is a good rise and hopefully a continued release of new titles will keep up the growth!

4
themightyant
Wed 25th Oct 2023

7% revenue increase is good but this is the sanitised version, it’s not all rosy, it’s worth mentioning the things NOT mentioned here. E.g.

They failed to hit their Game Pass growth targets for a third year
Failed to hit their console sales targets again too
As a result of these Phil and Satya aren’t getting their bonuses related to their Xbox performance
That 13% increase includes the cut from third party sales and content, it isn’t all Game Pass and first party

That’s not to be doom and gloom, there ARE some positives, but there were ALSO some negatives. But Microsoft expected better results

5
Sol4ris
Wed 25th Oct 2023

Xbox hardware revenue had a decline of 7%

This is it! I'm selling my SX, Xbox is doomed and Microsoft are going full blown third-party publisher only😂😂...

6
MrMagic
Wed 25th Oct 2023

Of course revenue was going to increase because they increased the price of GamePass.

7
Mephisto2869
Wed 25th Oct 2023

@Sol4ris you jest ,but they won't stay in the console market for much longer ,maybe some sort of WiFi enabled pad with a small built in ssd for saves with game pass pre loaded, would be a better option for them,id buy one.

8
BacklogBrad
Wed 25th Oct 2023

Tweet from Tom Warren of the Verge highlights how the ABK deal has affected next quarters projections.

Microsoft is forecasting a big gaming revenue growth next quarter thanks to the Activision Blizzard acquisition

CFO Amy Hood Q2 2024 fiscal guidance:

overall gaming revenue up mid to high 40%
Xbox content and services up mid to high 50%

9
themightyant
Thu 26th Oct 2023

@BacklogBrad that’s what you get for a cool $68.7 billion in cash and an additional wage bill of over $1 billion per year.

If they hit these targets and continue to they will be about in line with PlayStation in terms of revenue (Sony estimates $81 billion for the year) MS would be around $79 billion based on todays figures + 40%.

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