Microsoft: Gaming Revenues Above Expectations in the First Quarter of Fiscal 2022 and Breaking Record

Microsoft released its report for the first quarter of fiscal year 2022, ended September 30, 2021, in which the gaming industry, which includes the entire Xbox ecosystem, grew 16%, indo over and above. The Redmond house expected double-digit growth, but not so high.

This translates to about $3.6 billion in Xbox sales, what is the best result of the company in the first quarter, so we have a record. Xbox content and services grew just 2% over the period. This data, in particular, refers to the Xbox Game Pass and the original titles. Growth was driven by hardware sales, which increased by 166%.

Xbox content and services increased 2% compared to the same period last year, attributed to growth in its Xbox Game Pass subscription service and proprietary in-house titles. This increase follows a strong previous fiscal year attributed to the pandemic. COVID-19, Where Xbox services grew 30% amid a spike in demand for digital entertainment. Third-party title revenue declined during the period.

The Xbox Game Pass continues to represent a new revenue opportunity for Microsoft, funneling members to its console and PC services, serving hundreds of games for a fixed monthly fee. The Xbox Game Pass Ultimate service also offers perks like cloud gaming, streaming full Xbox titles to iOS and Android mobile devices. However, with box office hits like Halo Infinite and Forza Horizon 5 yet to come, future opportunities lie ahead for their services.

According to a chart published by Working Casual’s Dom, based on Xbox first quarter sales and other known data, the Xbox division’s current annual revenue is approximately $15.87 billion. Thus, these are the best twelve months ever for Xbox.

Microsoft generally generated revenue from 45.3 billion dollars in the first quarter of 2022, marking a +22% over the previous year. This resulted in operating profit growth of 27%, or $20.2 billion.