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Xbox Content & Services Revenue Grows 30% Year-On-Year Thanks to Game Pass & Games

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Xbox Content & Services Revenue Grows 30% Year-On-Year Thanks to Game Pass & Games

Microsoft announced its results for the first quarter of the fiscal year 2021, related to the period between July 1 and September 30.

Today, Microsoft announced its financial results for the first quarter of the fiscal year 2021, related to the period between July 1 and September 30.

Firstly, we get an update on the performance of the More Personal Computing business, which includes Microsoft’s gaming division and the Xbox brand.

You can find all the relevant data in the slides below.

We learn that revenue for Xbox content and services has seen a 30% growth year-on-year ($649 million), while gaming revenue in general has grown 22% ($550 million).

The growth for Xbox content and services was driven by the strong performance of first and third-party games and Xbox Game Pass subscriptions.

Xbox hardware revenue has declined by 27% (via form 10-Q) due to naturally lower sales ahead of the next-generation launch, but the drop still wasn’t enough to particularly dampen the growth of the gaming business as a whole (which includes both hardware and software).

Gaming was indicated as one of the drivers behind the 6% growth of the whole segment alongside Surface. This led to 8% growth in gross margin for the segment and 18% operating income growth.

In terms of Microsoft as a whole company, the key results are as follows.

  • Revenue was $37.2 billion and increased 12%
  • Operating income was $15.9 billion and increased 25%
  • Net income was $13.9 billion and increased 30%
  • Diluted earnings per share was $1.82 and increased 32%

If you want to compare, you can check out the results from the previous quarter (from April to June) published by Microsoft in July.

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