Microsoft’s gaming business enjoyed a relatively strong third quarter in terms of revenue generated, according to figures released today.

On Tuesday the company announced its results for the third fiscal quarter ended on March 31, 2023.

Microsoft said revenue from Xbox content and services, which is by far the division’s biggest money generator, was up 3% year-over-year, driven by growth in Xbox Game Pass.

Contrastingly, Xbox hardware revenue was down 30% “on a prior year comparable that benefitted from increased console supply”, according to the company.

Overall, third quarter gaming revenue declined 4% year-over-year to around $3.59 billion.

However, as noted by independent analyst @DomsPlaying, that figure marks the second best third quarter ever for the Xbox business.

It only trails the $3.74 billion generated in the third quarter of the last fiscal year, when Microsoft’s gaming business posted record revenue for a non-holiday quarter.

Microsoft FY 2023 Q3:

Using the reported decline of 4%, quarterly gaming revenue was ~ $3.59B.

Annual Xbox sales are just above $15.4B right now.

Xbox Content & Services is upwards of $12B, or 78% of the total based on my math.

Here's annualized Xbox business sales over time. pic.twitter.com/Dnmeo8COVS

— Dom (@DomsPlaying) April 25, 2023

Unlike fellow platform holders Sony and Nintendo, Microsoft doesn’t announce console sales figures as part of its quarterly results.

However, Microsoft CEO Satya Nadella and chief financial officer Amy Hood may provide additional insight into the gaming division’s performance during an earnings call at 2:30pm PT / 5.30pm ET / 10.30pm GMT.



Posted: Apr 29, 2023 7:17 am
Related Forum: Xbox Forum

Source: https://www.videogameschronicle.com/news/microsoft-has-reported-its-second-best-q3-for-xbox-revenue/