Microsoft Reports Record-Breaking Q1 for Xbox Gaming Revenue Despite Drop in Hardware Sales
In the first quarter of its 2024 fiscal year, Microsoft has released its earnings report, revealing a remarkable Q1 for Xbox gaming revenue, even though there was a 7% decline in hardware sales.
During Microsoft’s Q1 2024, which spans from July 1st to September 30th, Xbox achieved $3.9 billion in gaming revenue, marking a 9% increase compared to the previous year. The company attributes this success to the strong performance of its first-party titles and the popularity of Game Pass.
Coinciding with this record-breaking quarter, Bethesda’s highly anticipated game, Starfield, made its long-awaited debut and quickly garnered over 10 million players within the first few weeks of its release. During an investor call following the fiscal report, Microsoft CEO Satya Nadella confirmed that Starfield significantly boosted Game Pass subscriptions, setting a new record for the “most Game Pass subscriptions added on a single day ever” (according to The Verge’s Tom Warren).
Overall, Xbox’s content and services revenue saw a 13% increase. However, this growth was dampened by a 7% decline in hardware revenue due to decreased console sales.
It is important to note that Microsoft’s Q1 2024 earnings report does not include figures from its recently completed acquisition of Activision Blizzard for $69 billion. The impact of this monumental deal on Xbox’s performance will become clearer in the next fiscal quarter and beyond.