Microsoft’s gaming revenue saw a rise of 50% mainly due to the release of the Xbox series in the third quarter of the financial year 2021. Microsoft on Tuesday announced its fiscal results for the third financial quarter which ended on 31 March, 2021, reporting a 19% growth in its revenue. The reports also showed a growth of up to 50% as compared to the same time last year.
The gaming revenue growth was a result of the Xbox series’ launch. The reports come almost six months after the launch of the Xbox Series X, Xbox Series S, and the two new hardware starting a new console cycle. It’s also worth mentioning that because of their high demand, these devices still regularly run out of stock among retailers worldwide since their release last November. This helped the hardware revenue up 232%.
The Xbox content and its services saw a rise of 34% owing to the release of third-party titles, first-party titles and the Xbox Game Pass subscriptions. The Xbox Game Pass follows a Netflix-style subscription pattern for Xbox, PC, and cloud gaming. As of January 2021, the Xbox Game Pass reportedly had 18 Million active subscribers.
Senior analyst at Niko Partners, Daniel Ahmad through a tweet suggested that this has been the best Q1 (FY Q3) for Microsoft’s gaming division.
Also I think it's worth noting that even with the Xbox Series X | S launch, content and services revenue is still around 80% of total Xbox gaming revenue.
Xbox continues to push Game Pass as the main entry point into the ecosystem, with console just one of many hardware options
— Daniel Ahmad (@ZhugeEX) April 27, 2021
Microsoft CEO Satya Nadella said, “We’re expanding our opportunity as we help both gamers and creators play, connect and build across communities on any device. People are turning to Xbox more than ever to play and chat with friends and we saw record engagement this quarter led by strength on and off console. With Game Pass, we’re redefining how games are distributed, played and viewed. Just last week we added cloud gaming via the browser, expanding our reach across PC and mobile. Content is the flywheel behind the service’s growth and upon the closing of our acquisition of ZeniMax Media this quarter, we made 20 of the world’s most iconic and beloved games accessible via Game Pass with more to come.” He also added, “The launch of Xbox Series X and Series S was the most successful in our history with the most devices ever sold in a launch month”
Photo credit: eurogamer.net
SUBMIT YOUR ARTICLE
SUBMIT YOUR ARTICLE