Xbox Just Had Its Best Year Of All Time Based On Revenue

Pop the champagne.

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Microsoft reported earnings on Tuesday, announcing that its Xbox division posted revenue of $16.28 billion for the calendar year 2021. It was Xbox's best year of all time based on revenue.

The positive momentum comes after Microsoft acquired ZeniMax/Bethesda, and the company's fortunes are poised to presumably grow even stronger with its proposed buyout of Activision Blizzard.

Gaming revenue overall rose for Xbox, including hardware and software. Revenue from content and services during the year rose 8.8% to $12.6 billion, thanks in part to growth in Game Pass (which now has 25 million subscribers) and first-party game sales (Forza Horizon 5 and Halo Infinite were two of Microsoft's biggest 2021 games).

Third-party game sales slid, however, which impacted results, Microsoft said. Check out more stats from analyst Daniel Ahmad's recap of Microsoft's earnings report below.

As mentioned, Microsoft's Xbox division is set to grow much larger if the company's proposed buyout of Activision Blizzard goes through. Should that happen, Microsoft will own and operate juggernauts like Call of Duty, World of Warcraft, Diablo, and Candy Crush, among others.

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