Microsoft recently announced the company generated $3.74 billion in revenue during the recent quarter that ended on March 31st, 2022. This represents a 6% year-over-year from the same period in 2021. During Q3 2022, gaming content and services made up 81% of the company’s revenue.
This growth can be attributed to the growth of Xbox Game Pass subscriptions and first-party video game sales. Over the last 12 months, Game Pass has seen a 45% increase in the number of hours played. This comes after a January report indicated the number of Game Pass subscribers grew to over 25 million people.
Hardware sales also rose by 14% year-over-year thanks to the increased availability of the Xbox Series X. Overall, the company grew by 18% year-over-year to hit $49.8 billion.
The Profit‘s Take:
So, it was Xbox’s best non-holiday quarter to date. This is obviously good news for Microsoft. Maybe there is a correlation between Game Pass growth and Netflix’s subscriber decline? The hardware sales are still good, but they make up such a small portion of their revenues that it’s possible we see them stop producing consoles altogether. At some point, management will look at the writing on the wall and begin to ask how to get out of hardware. I suspect they’ll eventually try to find other ways to make up those small sales numbers without having to dedicate tons of resources to making consoles, controllers, etc.
(All information was provided by Dot Esports)