Microsoft’s latest financial reports for Q4 2023, the period ending 30 June 2023, reveal steady growth for Xbox gaming revenue – despite a drop in hardware sales. Per figures revealed by Microsoft, company gaming revenue increased by USD $36 million in the last financial quarter, representing a 1% rise.
This growth is attributed to Xbox content and services revenue, which rose by 5% in Q4 2023. Xbox Game Pass was reportedly a major contributor to this growth. In a post-results earnings call, Microsoft CEO Satya Nadella said Xbox Game Pass had set new Q4 records for monthly active users.
‘We set new fourth quarter highs for monthly active users driven by strength off console as well monthly active devices,’ Nadella said, per VGC. ‘We saw record fourth quarter engagement across Game Pass, with hours played up 22% year-over-year.’
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Notably, Microsoft also reports that Xbox hardware sales had an impact on these totals, with hardware sales down by 13% – likely a result of the Xbox Series X and Series S now being three years into their respective life cycles.
While future guidance was not outlined in this latest Microsoft report, it’s likely the company predicts an uptick in the near future, driven by interest in upcoming Xbox game, Starfield. It’s one of the most anticipated games of the year, and as a PC and console exclusive, it’s likely to contribute to significantly boosted console and software sales, as well as Xbox Game Pass subscriptions.
Microsoft is expected to reveal more details about the financial results for its gaming division later this week.
