Xbox Is Crushing It Right Now: Hardware Revenue Jumps By 232%, Total Gaming Revenue Up 50%
Xbox shortages are expected to continue, Microsoft adds.
Microsoft reported earnings on Tuesday, revealing that Xbox is doing exceptionally well right now from a business perspective following the launch of the Xbox Series X|S and the completion of its acquisition of ZeniMax.
Gaming revenue was $3.53 billion for the quarter ended March 31, which is up a whopping 50% year-over-year. Content and services revenue for Xbox jumped by 34%, thanks to game sales and revenue from Game Pass. Xbox hardware revenue, meanwhile, exploded, posting a 232% year-over-year gain thanks in part to the launch of the Xbox Series X|S.
Analyst Daniel Ahmad of Niko Partners also mentioned that gaming revenue for the past 12 months reached about $15 billion, which is up from $10.3 billion for the 12 months before that. In short, Xbox is posting massively successful numbers right now.
In keeping with tradition, Microsoft did not release any hard sales numbers for Xbox consoles, nor did it provide a new number for Xbox Game Pass subscribers.
Fun Fact: Microsoft's gaming revenue over the past 12 months ending March 31, 2021 was approximately $15 billion, compared to $10.3 billion in the 12 months ending March 31, 2020.— Daniel Ahmad (@ZhugeEX) April 27, 2021
Series X|S launch helped the past 2 quarters, as did ongoing game pass growth. https://t.co/RlzSEsUnDu
Microsoft overall--spanning all business divisions--posted revenue of $41.7 billion (up 19%) and a profit of $15.5 billion (up 44%). That profit is enough to pay for the ZeniMax acquisition twice, just as was the cast last quarter.
Looking ahead, Microsoft said it expects Xbox shortages to continue, while content and services revenue from Xbox should decline in the next quarter due to the incredibly strong quarter a year before thanks to the pandemic.
Microsoft Xbox revenue guidance for next Q:— Tom Warren (@tomwarren) April 27, 2021
• Gaming: "expect revenue growth in the mid to high single digits"
• Xbox Series X/S: supply constraints will continue
• Xbox content and services: "revenue to decline in the mid to high single digits" (due to strong Q last year)
"Over a year into the pandemic, digital adoption curves aren't slowing down. They're accelerating, and it's just the beginning," Microsoft CEO Satya Nadella said. "We are building the cloud for the next decade, expanding our addressable market and innovating across every layer of the tech stack to help our customers be resilient and transform."
We won't have to wait long to find out how Sony's PlayStation business is doing, as the company will report earnings tomorrow, April 28.