Microsoft has released its latest financial report. The Xbox division continues to grow, reaching over $3.7 billion in revenue for the quarter ending March 31.
- Microsoft reported quarterly revenue of $49.4 billion, which is up 18% year-over-year.
- The company’s net income was $20.4 billion, which is up 19% compared to the same period from the previous year.
- Xbox reached $3.7 billion in revenue, which is up 6% year-over-year. It was the best non-holiday quarter in the division’s history.
- Content and services accounted for 81% of Xbox revenues, with the remaining 19% coming from hardware sales.
- As pointed out by Niko Partners senior analyst Daniel Ahmad, it is also the first time Xbox’s content and services revenue crossed a $3 billion mark in a Q1 period.
Total revenue: $3.74 billion (+6% YoY)
Content & Services = 81% of revenue
Hardware = 19% of revenue
— Daniel Ahmad (@ZhugeEX) April 26, 2022
- According to Microsoft, Xbox Series X|S was the market leader during the first quarter among other next-gen consoles in the US, UK, Canada, and Western Europe.
- Speaking of Game Pass, the company noted that total hours played by subscribers grew 45% over the past 12 months. Microsoft didn’t disclose the specific numbers, only saying that “billions of hours have been played” by Game Pass users.
- However, growth of Xbox content and services revenue was below expectations, “driven by lower engagement across the platform, even as it remains above pre-pandemic levels.”
- Microsoft also expects the latest shutdowns in China to negatively impact supply for Xbox consoles in the next quarter.
- Taking into account this factor and lower engagement hours, the company expects its gaming revenue to decline mid-to-high single digits.