Xbox Series X / S sales boost Microsoft’s quarterly game revenue surge

MicrosoftGame business Xbox series X / S console.

On Tuesday, the company announced its fourth quarter results, which ended June 30, 2021.

Have previously Forecast high profit growth from mid-single digits, Microsoft reported quarterly game revenues up 11% ($ 357 million) year-over-year.

Growth was driven by increased demand Xbox It was partially offset by a decline in hardware, Xbox content and services.

Xbox hardware revenue surged 172% due to increased prices and quantities of consoles sold following the launch of the Xbox Series X / S in November 2020.

CEO at Microsoft’s quarterly earnings briefing on Tuesday Satya Nadella Said The Xbox Series X / S is the company’s “best-selling console ever.” The Xbox Games Pass is also “growing rapidly,” with subscribers playing about 40% more games and spending 50% more than non-members.

Despite reported increases in Xbox Game Pass subscriptions and first-party titles, Microsoft reported a 4% ($ 128 million) year-on-year decrease in overall revenue for game content and services. Said.

This is due to the relatively poor performance of third-party titles, which were particularly strong a year ago, according to the home-based guidelines associated with Covid-19.

At Microsoft’s financial results briefing, CFO Amy Hood also provided a forecast for the gaming business for the quarter ending September 30, 2021.

“In the game, we expect revenue growth in the low double digits,” she said. “Console growth is again constrained by supply.

“Revenues from the strongest Xbox content and services compared to the previous year should be in the low single digits.”

The Xbox Series X / S was the highest-selling hardware platform in the United States in June. According to the latest report from The NPD Group..

June Xbox console dollar sales set a new record for Microsoft’s gaming platform, surpassing 2011’s record highs, according to market research firms.