Latest Quarterly Report For Microsoft Reveals Gaming Revenue Up 40%, Hardware Revenue Grew 86%


Posted on January 26, 2021 by Nick Moreno

Listen to this Article:

Predating back to this past November, Microsoft issued some impressive metrics in response to the launch of both the Xbox Series X & Xbox Series S consoles. With two next-generation consoles prepared for launch this time around, it is expected that the next iterations of Xbox would welcome an even more impressive launch. And it did just that with the amount of new player welcomed at launch, number of games available, and consoles sold compared to previous launches.

In total, it is anticipated that Microsoft will record new highs in its quarterly performance coming from Xbox after seeing a steady decline in hardware sales from the gaming division in the past. Not only that, but also an increase in performance for service as well after witnessing the number of Xbox Game Pass users moving to the new consoles – estimated 70 percent – and growth continuing for the initiative.

Now on Tuesday, Microsoft unveiled its FY21 Q2 report revealing the Xbox is receiving astronomical growth thanks to the release of the Xbox Series X|S. You can view the slide in the image below:

Going into detail on how Xbox performed in the recent financial quarter, overall revenue faces a 51 percent increase in growth. Additionally, services and content also heightened thanks to Xbox Game Pass Ultimate and first-party titles with 40 percent in growth. Most excitingly, Xbox hardware recorded revenue grew 86 percent as a response to the Xbox Series X|S shipping in mid November.

Noted, while launch did face new heights, the overall financial quarter faced a decline in unit sales. Niko Partners’ David Ahmad presses on the topic revealing it faced a decrease in unit sales in contrast to the Xbox One back during its launch. However, that is blamed on production which is a direct symptom from the COVID-19 epidemic.

While product is running scarce as many Xbox users look to purchase a next-generation console, production is told to be ramping up leading into 2021. Phil Spencer in a year-ending interview with Larry Hyrb shares production is to increase entering the new year after working closely with its partners on manufacturing the systems. You can read the full report by heading here.

What is your response to Xbox’s performance this financial quarter?

Source: Microsoft

Share Everywhere!