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.
Moreover, CEO Satya Nadella revealed, during Microsoft’s Fiscal Year 2023 First Quarter Earnings conference call, that about half of the Xbox Series S consoles sales were to users who have never owned an Xbox console. In his words, Nadella said, "As we look towards the holidays, we offer the best value in gaming, with Game Pass, and Xbox Series S. Nearly half of the Series S buyers are new to our ecosystem".
Overall, Microsoft made a total revenue of $50.11 billion, which represents an 11% year-on-year increase over last year’s earnings. Unfortunately, the company experienced a 14% net income decrease to $17.56 billion.
Phil Spencer, who heads Microsoft Gaming, recently teased what is probably the X-box streaming device Keystone. Spencer also recently revealed that Microsoft is working with Square Enix to develop an Xbox port of Final Fantasy 14.