Today, Microsoft announced its financial results for the first quarter of the fiscal year 2023, related to the period between July 1, 2022, and September 30, 2022. The press release shared today includes an update on the performance of the More Personal Computing business, which includes Microsoft’s gaming division and the Xbox brand.
You can check out all the relevant figures for the business in the slides displayed below.
We learn that gaming revenue in general was $3,610 million and grew slightly year-on-year. (up 4% in constant currency against $3,593 million), while content and services revenue declined 3% year-on-year, recording lower results for first and third-party content, lower engagement hours and higher rate of monetization, partly offset by growth in Game Pass subscriptions. Xbox hardware revenue grew 13% year-on-year driven by the high volume of consoles sold and pricing.
A decline in gaming gross margin is also identified as a factor alongside Windows in a 9% decline in overall gross margin for the More Personal Computing business.
It’s worth mentioning that this result is better than the forecast shared last quarter since Microsoft expected both gaming revenue and content and services revenue to decline in the low-to-mid single digits,
Speaking of Microsoft as a whole company, you can read the key results below. As you can see, all relevant results are positive and show healthy year-on-year growth, which has been the consistent trend for the company for several past quarters.
If you want to make a comparison with historical figures, you can check out the results from the previous quarter (from April 1, 2022, to June 30) published by Microsoft in July.
As usual, It’s worth reminding that Microsoft doesn’t use the traditional fiscal year from April to March, but instead sticks to its own calendar from July to June, which is why the results described here are for the first quarter and not the second.
