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Xbox Is In Great Shape Ahead Of The Series X And Halo Infinite Launch

Microsoft's Xbox division is growing across games, services, and even hardware.


Microsoft's Xbox division is enjoying very strong results lately, due in part to the COVID-19 pandemic that's keeping people at home playing games. Microsoft reported earnings on Wednesday, and the Xbox division saw its revenue rise by a massive 64 percent (up $1.3 billion).

The sales uptick was led by "growth in Xbox content and services." Content and services revenue jumped by $1.2 billion (up 65 percent) due in part to "record engagement" as stay-at-home measures remain in place. Additionally, Microsoft said it enjoyed "strength" from third-party games, which pay Microsoft to be on their store.

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Now Playing: Microsoft's Secret Weapon For Next-Gen Is Xbox Game Pass

Microsoft CEO Satya Nadella said "it was simply a breakthrough quarter for gaming," adding that Xbox Game Pass is seeing "record subscriber growth" on console and PC. However, he did not provide a new figure beyond the 10 million subscriber number that Microsoft announced earlier.

Not only did content and services revenue rise, but hardware also posted gains, rising by 49 percent thanks to more consoles sold than before. Microsoft just recently discontinued some Xbox models.

These results put Microsoft on a strong footing ahead of the Xbox Series X launch later this year, possibly in November. As you can see in the chart below, Xbox dominated all of Microsoft's other major business categories when it comes to year-over-year revenue growth.

Xbox is dominating at Microsoft right now
Xbox is dominating at Microsoft right now

Xbox's fortunes are due to grow further still with the release of the Xbox Series X and Halo Infinite this holiday. Microsoft showcased Halo Infinite and other Xbox exclusives during an event on Thursday.

Halo Infinite will be Microsoft's only Halo game for the considerable future, with plans for future content updates and 343 Industries viewing it as a platform that allows it to move away from numbered entries.

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