Microsoft Quarterly Report: Xbox Hardware up 13%, Game Revenue up 4%, Game Pass Grows

What say you fellow SW fans? Are you surprised to see the Xbox division continues to grow? I must say, with a lackluster year of first part titles, I am surprised that Xbox hardware is up 13%. They continue to outsell Xbox OG, Xbox 360 and Xbox One, launch dates aligned.

Great news for 2023 I suppose with their onslaught of AAA exclusives coming out.

@kvallyx: I am surprised it grew, since 2022 was a stinker for 1st party content. Excited to see what 2023 will bring.

So Game Pass grew, but content and services revenue dropped??? 🤔

And that's with Gamepass subscription revenue offsetting some of that decline. This makes sense though since they've put zero new first party titles out. this year and people are game hopping on gamepass, making them pay out more to devs.

Xbox is not a dying brand and growth should be expected. Especially with the Series S being as cheap and available as it is along with the value proposition of Gamepass. I wonder how much more they would have grown if they had any 2022 releases this year.

I'm very concerned about these numbers, obviously up means down.

I wonder how well All Access works for them.

So no need for concern then. 🤔

Anyway a bit surprising considering they’re first party output has been pretty minimal so far. They have built a very good ecosystem with the backwards compatibility and what not. They’ve also got a solid library of games currently on Game Pass and continue to bring some solid third party titles onto the service. Will be interesting to see how it goes once the big first party stuff starts really hitting.

I don't think people understand the massive value and reach Game Pass has.

It's easy to think that it's worthless if you go buy System Wars, but (anecdotally) every client I work with has a subscription even if they also have a PS5.

I'm often surprised they even know about it since MS hasn't done much advertising

@kvallyx: MS and Xbox keeps on #winning

Up means up, and down means down. Xbox hardware revenue growth drove their overall revenue. That’s the “up.” Content and services was down, despite Game Pass growth and increased hardware install base. They‘ve put more 3rd party games in the service, and yet they’re down yoy. Increased spending, less revenue… But hey! Y’all get to spend less money on games!

This is literally playing out the way I said it would… One day, a bunch of y’all are gonna owe me an apology…

Congrats Xbox!

@goldenelementxl: No, fanboy, we won't.

When you're proven wrong, will you man-up and admit it?

So it’s good news then.

I’ve admitted to being wrong any time it has happened. I don’t have skin in the game, fanboy. I said Game Pass wouldn’t push financial growth. Hardware revenue is their growth driver according to this report. Something certain folks told us doesn’t matter anymore. Their content and services is DOWN yoy compared to ‘21. Which also happened to be down compared to ‘20. Xbox’s content and services revenue continues to move in the wrong direction, regardless of the subscription growth.

We were told Game Pass would increase software sales. Not only is that not true, it’s having a negative impact on Xbox’s software revenue as a whole… But I need to man up and admit to being wrong? That’s cute

and that's a bad thing?.. 🤔🙄

on-topic, gaming revenue is up, hardware is up, and Game Pass grew.. sounds like good news but I'm sure a certain "concerned" Xbox fan will let us know why we should all be worried about the state of Xbox.. 🤡

@goldenelementxl: Not true

@goldenelementxl: Apologize for the 5 years (and counting) I've been playing games through the service? That's almost 2000 days of reading concerned citizens warning me to stop having fun. Are you going to apologize for each of those days?

I agree it’s great news that Xbox is doing so well and continues to get better.

dude, don't bother..

there's just going to be an incoming deflection of "i'm not talking about the real world, Xbox is my favorite brand, enjoy what you enjoy" followed by "something something revenue is the most important measurement of [insert current narrative]", ending with something along the lines of "yall fanboys don't see the bigger picture"..

it's the same BS literally everytime there's remotely good Xbox news..

EDIT: literally called it line for line .. 🤣🤡

I NEVER said you can’t have fun with Game Pass games. There’s a lot of good games available on the service. I’m not speaking on that, but the strategy and economic strategy deployed by Xbox.

So we’ve gone from, “Game Pass will grow Xbox,” and “Game Pass will increase software sales,” to “well none of that has happened, but I’m having fun!”

Lems have opened the goal post of success about as wide as the sun at this point...

He wants people to apologize to him for him lying and being a cow? 😂

Driven by hardware sales… The metric you care the least about… How are those MAUs impacting Xbox content and services revenue?!?! They made more money without them! That’s concrete proof of what many thought would happen.

clown emoji X3

@Antwan3K: Xbox making less content and services revenue with more MAUs is good news?!?!

Yikes

@goldenelementxl: lmao

@goldenelementxl: Yeah that's crazy I know. Playing games to have fun, insanity!

Keep warning people that Gamepass is not sustainable yada yada. Maybe in 10 years you'll be right and no one will care.

Didn't you bet your account over Gamepass? When is it due?

soooooo, we should be concerned?.. 🤔 Xbox doomed?..

again, gaming revenue is up, hardware is up, and Game Pass grew.. not sure how or why you're trying to spin that into a negative but please continue.. 🤡

Didn’t take long for the SDF to butcher my thread 😂

at the end of this year..

that's how insane the obsession with Game Pass has gotten.. ✌🏽

yeah, i'm gonna bow out of this one.. it was just fun to literally predict line-for-line the incoming "concern".. 🤣

As if your line for line defense wasn’t predictable…

🙄😂🤡🤦🏽‍♂️🙏🏾🙅🏾‍♂️🥉📉

No GamePass numbers? whack.

These mean nothing to me. Up from what? I need hard numbers. More number fudging bull crap from MS.

Added context

PC Game Pass grew 159%
Cloud users DOUBLED

Content and services revenue dropped…

Huh?!?!

The math is playing out just like I said it would. And it’s not like ‘21 was some crazy successful year…. But meh comparisons to meh numbers = success somehow. Yet I’m being accused of “spinning?”

There is a mountain full of ironY in your post 🤦‍♂️

Microsoft Q1 2023: profits and Windows down but Xbox and devices up

https://www.theverge.com/2022/10/25/23422903/microsoft-q1-2023-earnings-revenue-profits-windows-xbox-gaming-surface

Microsoft’s other hardware, Xbox, is up this quarter. Hardware revenue increased by 13 percent alongside a 3 percent dip in Xbox content and services revenue. Microsoft says this was driven by “declines in first-party content and in third-party content, with lower engagement hours and higher monetization, particularly offset by growth in Xbox Game Pass subscriptions.” Overall, gaming revenue at Microsoft “grew slightly” year over year, which means it was flat.

Interestingly, Nadella revealed that “nearly half of the Xbox Series S buyers are new to our ecosystem.” That explains Microsoft’s investment in the $299 Xbox Series S. It’s an Xbox Game Pass console for people who have never touched an Xbox before.

Speaking of Xbox Game Pass, Microsoft once again hasn’t provided an update on Game Pass subscription numbers this quarter after the service grew to 25 million in January following the holiday releases of Age of Empires IV, Forza Horizon 5, and Halo Infinite.

“In gaming, we saw usage growth across all platforms, driven by strength off console,” says Nadella. “PC Game Pass subscriptions increased 159 percent year over year.” Microsoft says more than 20 million people have streamed games on Xbox Cloud Gaming,up from 10 million earlier this year. It’s clear that Fortnite deal has helped boost Microsoft’s cloud gaming efforts.

Awesome! Thank you Phil!

"Speaking of Xbox Game Pass, Microsoft once again hasn’t provided an update on Game Pass subscription numbers this quarter after the service grew to 25 million in January following the holiday releases of Age of Empires IV, Forza Horizon 5, and Halo Infinite."

Can't imagine why.

Meh

I can confirm my gaming options on Xbox are up this final quarter.

Scorn

Plague tale reqium

Amnesia collection

Amnesia reborn

Soma

Thanks gamepass

I think we can all agree..

lol :P

Xbox Made More Money In Past 3 Months Than It Ever Has For A Q1 In 20-Year History

Microsoft's Xbox division brought in more than $3.6 billion in the past three months.

"Microsoft did not announce a new Game Pass subscriber number, but CEO Satya Nadella said PC Game Pass specifically saw a 159% increase."

https://www.gamespot.com/articles/xbox-made-more-money-in-past-3-months-than-it-ever-has-for-a-q1-in-20-year-history/1100-6508625/

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Just wowzerz, mah herm cousins are lovin their GP. Smart fellas they are. lol ;)

what xbox fans will not admit.

xbox gamepass numbers are up but software sales down

ps5 and ps4 ps plus numbers going up and software sales are up.

I have seen so many xbox fans say if its not on gamepass I don't bother.

Oof.

Jesus, you cows are so desperate.

Software sales are down because almost all 1st party titles were delayed to 2023. Are you really going to sit there and try to say that the numbers wouldn't have been up if Redfall, Starfield, and S.T.A.L.K.E.R 2 had launched this year as originally planned?

Game Pass grew. To what?

um there has been so many third party games. yet they don't buy them.

look at the last forza less sold forza yet its the most played one.

gamepass spoiled xbox gamers so much they just pay for gamepass.

not saying that its bad but xbox fans never want to admit it.

And those people can't afford the better box, so they'll likely live off GP or F2P games like Fortnite and Apex. There's no growth with Xbox. They were just better off using all their cash reserves to buy Sony and shut Playstation down instead of overspending on third party pubs stupidly thinking they could phase them out. MS can't even monopolize right

It's down 3%, which can largely be blamed on lack for 1st party titles. For your scenario to be true, the number would be significantly higher.