Starfield drives record financial quarter for Microsoft

Q1 2024 has become a record quarter for Microsoft, with strong growth in gaming revenue.
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Microsoft has reported its strongest financial quarter ever in Q1 2024, with record growth in gaming revenue. Per details posted in the report, and in a subsequent presentation shared on social media, Microsoft recorded US $3.919 billion in Xbox gaming revenue for the quarter, up 9% year-on-year.

Likewise, Xbox Game Pass achieved significant growth, with the Xbox content and services segment up 13% year-on-year. While many games likely contributed to this rise, it’s fair to assume the bulk of growth can be attributed to Bethesda’s Starfield, which achieved largely positive reviews and word-of-mouth sentiment following its launch in early September 2023.

Starfield managed to exceed over one million concurrent players on launch day, and was the highest-selling game in the US in its launch month. Per Bethesda, the game had around 10 million players by mid-September, with the number likely climbing thanks to it going “free” with an Xbox Game Pass subscription.

Read: Starfield Review – Reach for the Stars

Elsewhere, Microsoft reported a slight decrease in hardware sales of around 7%, as interest in the Xbox Series X and Series S settled. For now, Microsoft has not unveiled future plans for these consoles – although with rival Sony recently announcing a refresh for the PS5, we may see an announcement shortly – perhaps in the form of the leaked Xbox console with a rounder design that popped up during the Activision Blizzard merger case.

Speaking of Activision Blizzard – this report is a very notable one for Microsoft, as its next report in Q2 2024 will likely include Activision Blizzard as a primary player. This may deliver insight into the financial situation of the company post-merger, and reveal the worth of Microsoft’s whopping US $68.7 billion investment.

Stay tuned for news of this report, as Microsoft begins the next phase of its acquisition journey.

Leah J. Williams is a gaming and entertainment journalist who's spent years writing about the games industry, her love for The Sims 2 on Nintendo DS and every piece of weird history she knows. You can find her tweeting @legenette most days.