Microsoft's Xbox division is enjoying very strong results lately, due in part to the COVID-19 pandemic that's keeping people at home playing games. Microsoft reported earnings on Wednesday, and the Xbox division saw its revenue rise by a massive 64 percent (up $1.3 billion).
The sales uptick was led by "growth in Xbox content and services." Content and services revenue jumped by $1.2 billion (up 65 percent) due in part to "record engagement" as stay-at-home measures remain in place. Additionally, Microsoft said it enjoyed "strength" from third-party games, which pay Microsoft to be on their store.
You need a javascript enabled browser to watch videos.
Click To Unmute
Firearms Expert’s FAVORITE Weapons Of 2023
State Of Gaming Handhelds In 2023How Lies of P Cracked the Souls GenreLike a Dragon: Infinite Wealth - Official Ichiban Kasuga Character Spotlight TrailerLike a Dragon: Infinite Wealth - Official Chitose Fujinomiya Character Spotlight TrailerLike a Dragon: Infinite Wealth - Official Kazuma Kiryu Character Spotlight TrailerLike a Dragon: Infinite Wealth - Official Saeko Mukoda Character Spotlight TrailerLike a Dragon: Infinite Wealth - Official Eric Tomizawa Character Spotlight TrailerLike a Dragon: Infinite Wealth - Official Tianyou Zhao Character Spotlight TrailerLike a Dragon: Infinite Wealth - Official Seonhee Character Spotlight TrailerLike a Dragon: Infinite Wealth - Official Koichi Adachi Character Spotlight TrailerLike a Dragon: Infinite Wealth - Official Yu Nanba Character Spotlight Trailer
Share
LinkEmbed
Size:640 × 360480 × 270
Start at: End at: Autoplay Loop
Want us to remember this setting for all your devices?
Sign up or Sign in now!
Please use a html5 video capable browser to watch videos.
This video has an invalid file format.
00:00:00
HTML5
Auto HD High Low
Report a problem
Sorry, but you can't access this content!
By clicking 'enter', you agree to GameSpot's
Terms of Use and Privacy Policy
enter
Now Playing: Microsoft's Secret Weapon For Next-Gen Is Xbox Game Pass
Microsoft CEO Satya Nadella said "it was simply a breakthrough quarter for gaming," adding that Xbox Game Pass is seeing "record subscriber growth" on console and PC. However, he did not provide a new figure beyond the 10 million subscriber number that Microsoft announced earlier.
Microsoft CEO @satyanadella says "it was simply a breakthrough quarter for gaming" for Microsoft. "Xbox Game Pass is seeing record subscriber growth across console and PC." No update on the 10 million subscribers disclosed in Q3.
— Tom Warren (@tomwarren) July 22, 2020
Not only did content and services revenue rise, but hardware also posted gains, rising by 49 percent thanks to more consoles sold than before. Microsoft just recently discontinued some Xbox models.
GameSpot Newsletters
Get the latest gaming news, reviews, and deals sent to your inbox, FREE!
Sign Up
Sign Up
By signing up to receive newsletters, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Thanks for signing up
These results put Microsoft on a strong footing ahead of the Xbox Series X launch later this year, possibly in November. As you can see in the chart below, Xbox dominated all of Microsoft's other major business categories when it comes to year-over-year revenue growth.
Xbox is dominating at Microsoft right nowXbox's fortunes are due to grow further still with the release of the Xbox Series X and Halo Infinite this holiday. Microsoft showcased Halo Infinite and other Xbox exclusives during an event on Thursday.
Halo Infinite will be Microsoft's only Halo game for the considerable future, with plans for future content updates and 343 Industries viewing it as a platform that allows it to move away from numbered entries.