Microsoft raked in nearly 1 billion in Xbox subscription revenue
Games

Microsoft raked in nearly $1 billion in Xbox subscription revenue last quarter

Last quarter’s gaming business segment results for Microsoft proved broadly mixed, as total revenue fell 4% to $3.59 billion and sales of the Xbox game consoles directly reduced core revenue by 30%, but the der Gaming subscription service not only grew core revenue to nearly $1 billion, but also expanded gaming audience to over 500 million unique users.

    Image source: Microsoft

Image source: Microsoft

Xbox’s direct software alignment grew the company’s core revenue by 3% year over year. It remains Microsoft’s mainstay in the gaming segment. The year-over-year decrease in gaming consoles revenue was largely due to the high base effect generated at the beginning of calendar year 2022. Then, after a period of instability, the company managed to build up the supply of components for game consoles in sufficient quantities, and pent-up demand predictably increased sales.

On the other hand, Microsoft’s gaming console revenue last quarter hit its lowest level since the Xbox Series X and S families were announced in 2020. This is partly due to a lack of interesting games last year to boost console sales. In the current quarter, Microsoft expects gaming revenue to grow 5-9%, while Xbox software and subscriptions will grow core revenue by 11-15%.

PC Game Pass launched in 40 new markets this month and is now available to customers in 86 countries. The company still expects to launch Game Pass on mobile devices, and the not yet agreed acquisition of Activision Blizzard would help it to implement this plan. In January, Xbox Game Pass customers counted 25 million subscribers, but how that number has changed since then is not specified.

In any case, Microsoft’s gaming segment revenue of $3.59 billion for the most recent quarter ranks as the second-biggest after last year’s $3.74 billion, which is a record for the group. Last quarter, the company set new records for both monthly active users and active gaming devices.

About the author

Alan Foster

Alan Foster covers computers and games and all the news in the gaming industry.

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