According to Microsoft, its gaming revenue grew by 11% ($357 million) year-over-year. Microsoft says this growth was driven by demand for Xbox Series X and Xbox Series S consoles. “Xbox hardware revenue increased by 172% driven by higher price and volume of consoles sold due to the Xbox Series X|S launches,” reads the report.
During Microsoft’s earnings call with investors, company CEO Satya Nadella said the Xbox Series X and S are “our fastest selling consoles ever with more consoles sold life to date than any previous generation” and that Xbox Game Pass is growing rapidly with subscribers playing approximately 40% more games and spending 50% more than non-members.
However, despite Microsoft reporting growth in Xbox Game Pass subscriptions and first-party titles, Xbox content and services revenue decreased 4% ($128 million) year-over-year, which was “driven by a decline in third-party titles on a strong prior year comparable that benefitted from stay-at-home scenarios.” This decline was expected, considering much of the world was forced to stay at home last year and jumped back into games for entertainment, spending their money and generating major revenue for gaming companies.
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