Xbox revenue has risen by 6% year-on-year to $3.74 billion, Microsoft has revealed in its financial report for the third quarter of its fiscal year. Xbox Game Pass and console sales have also seen impressive increases.Microsoft’s financial results for the third quarter of its fiscal year show impressive increases in gaming revenue, with Xbox content and services accounting for 81% of the revenue and hardware accounting for 19%.Xbox’s “best non-holiday quarter” yetIt’s been another fantastic quarter for Microsoft’s Xbox division according to the company’s recent financial report (thanks, GamesIndustry.biz). Gaming revenue for the three months ending March 31st, 2022 saw a 6% increase year-on-year to $3.74 billion, Looking at Niko Partners analyst Daniel Ahmad’s report, Xbox content and services make up for around 81%, or $3.02 billion of the gaming revenue. Ahmad says it’s Microsoft’s “best non-holiday quarter” yet, but according to Microsoft’s chief financial officer Amy Hood, it was “below expectations.” Content and services include game sales, third-party game royalties, digital transactions, and subscription services like Xbox Game Pass.Hardware sales enjoyed a 14% increase throughout the quarter due to an increased supply of Xbox Series X|S consoles and accounted for 19% of the total gaming revenue. Hood warned, though, that it might be short-lived, as coronavirus-related production shutdowns in China could impact Xbox, Surface, and Windows manufacturing. Between lower console supplies and “lower engagement hours year-over-year,” Hood says Microsoft expects its gaming revenue to “decline by mid-to-high single digits.” While this staggering amount of gaming revenue is definitely an impressive feat for the company, it’s still Microsoft’s smallest division in terms of revenue. In the same quarter, Productivity and Business Processes generated $15.8 billion, while Intelligent Cloud revenues generated $19.1 billion.Xbox Cloud Gaming has seen more than ten million people stream games to date, Microsoft’s CEO Satya Nadella also said when discussing the Xbox division’s accomplishments. It was revealed back in January that Xbox Game Pass had surpassed 25 million subscribers. The Cloud Gaming features are locked behind the premium Xbox Game Pass Ultimate subscription, so Nadella’s comments indicate that at least 40% of Game Pass subscribers have opted for the highest available subscription tier. While not revealing an exact figure, Nadella noted that Xbox Game Pass subscribers’ number of hours played has risen by 45% and can be measured in billions.Nadella also said that the Xbox Series X|S were market-leading “next-gen” consoles in the US, Canada, UK, and Western Europe during the period, which the NPD group’s report earlier this week said had generated the most dollar sales for the past quarter.All financed out? Us too… let’s leave it there and you can share your thoughts on all these big numbers down there in the comments!
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