Microsoft has reportedly experienced its best ‘non-holiday quarter ever‘ in FY22 Q3, the period ending 31 March 2022. Financial results shared publicly identify a 6% year-on-year rise for Microsoft gaming revenue, from US $3.53 billion (AU $4.96 billion) to US $3.74 billion (AU $5.25 billion). It’s a small rise overall, but a notable one given this period was hampered by console shortages.
Despite this, gaming hardware sales experienced a massive bump in Q3 2022, with Microsoft noting a 14% rise in Xbox hardware revenue. This was likely driven by the inflated demand for the Xbox Series X, which is typically snapped up by bots or keen punters as soon as it goes on sale.
Even two years on from launch, it’s still extremely difficult to find a console at retail – whether searching in person, or online. According to Microsoft, supply of consoles is up from the previous year, thanks to the easing of some coronavirus restrictions around the world – but challenges still continue around the globe.
Regardless, Microsoft’s gaming sector is experiencing a steady growth in all sectors – hardware, software and Xbox Game Pass subscriptions. In its financial report, the company specified that Xbox content and services revenue (including Xbox Game Pass) had grown 4% year-on-year – although it did note that there were ‘declines from third-party titles’.
This could indicate a consumer base more willing to fork out for first-party Xbox titles and subscriptions, rather than games from non-Xbox studios.
Microsoft also revealed that more than 10 million people have used its Xbox Cloud Gaming service, and the time spent playing by Xbox Game Pass subscribers is up 45%, and can be measured in the ‘billions’.
Read: Nearly half of Australian video game players use a game subscription service
During a Microsoft earnings call, CEO Satya Nadella reportedly claimed the company had now captured market share for two quarters in a row, per VGC.
‘We are the market leader this quarter among the next-gen consoles in the United States, Canada, the UK and western Europe,’ Nadella said.
The recent blockbuster success of Microsoft’s gaming output will likely continue into the next quarter as Xbox hardware sales continue to grow. It will also likely receive a major boost in 2023 when its deal to purchase Activision Blizzard is formalised. There’s hope that by then, the Xbox Series X will be a common feature in retail stores.