Microsoft hosted its quarterly financial conference call for investors and analysts and Chief executive officer Satya Nadella and chief financial officer Amy Hood talked about the Xbox business.
Nadella declared that Microsoft is “all-in” on games, boasted the “rapid” growth of game pass, and leadership in cloud gaming.
He also mentioned that Xbox series X and S are Microsoft’s fastest-selling consoles ever, while content creators in games like Microsoft Flight Simulator and Minecraft are earning twice as much this year compared to the previous year.
“Gaming is the largest category of the entertainment category and we’re expanding our opportunity to reach the world’s 3 billion gamers wherever and whenever they play.
We’re all-in on games. At E3 last month we unveiled our biggest games lineup ever announcing 27 new titles which will all be available to game pass subscribers.
Game pass is growing rapidly and it’s transforming how people discover, connect, and play games. Subscribers play approximately 40% more games and spend 50% more than non-members.
We continue to lead in the fast-growing cloud gaming market. Just last month we made Xbox cloud gaming on PC as well as Apple phones and tablets via the browser in 22 countries, with more to come.
Millions already stream games to their desktops, tablets, and phones, and the Xbox Series S and X are our fastest-selling consoles ever with more consoles sold life-to-date than any previous generation.
Finally, we continue to grow our opportunity in the creator economy adding new ways for players to build and monetize their creations in many of our most popular games including Flight Simulator and Minecraft. Creators earn more than double what they did a year ago across our titles.
Hood mentioned the guidance for the next quarter, with growth for gaming revenue expected to be in the low double digits (10-15%) and console growth expected to be still constraint by supply.
Xbox content & services revenue should grow by “low single digits” (1-5%) due to a strong comparable in the previous year.
If you’re interested in Microsoft’s financial performance (especially in regards to the Xbox business) you can check out our dedicated article from earlier today.