Microsoft recently released its financial report for the first quarter of its financial year, which ended on September 30. The report showed that Xbox gaming revenue increased by 0.47% year-on-year, moving from $3.59 billion to $3.61 billion within that period, thereby setting the company's record for the best first-quarter Xbox revenue ever.
Also, the company's report revealed that Xbox hardware sales increased by 13% between July and September when compared to the same period last year. This increment mirrors its gains from last year albeit not on the same scale. Microsoft had experienced an increase in hardware sales by 166% revenue over the previous year, which could be traced directly to the country's release of its new generation consoles Xbox Series S and Series X. This fiscal year's increment has improved supply chains to thank.
Unfortunately, Xbox content and services revenue experienced a 3% decrease in revenue due to a decline in first-party and third-party game sales. Luckily, this decrease was partly cushioned by an increase in Game Pass subscriptions and higher monetization. CEO Satya Nadella revealed during an earnings call that subscriptions for the service have gone up by 159%. Nadella also revealed that more than 20 million people have taken advantage of the cloud gaming opportunity from its 2019 debut till now.
