Microsoft recently held its Q1 2023 earnings call. And, needless to say, it was one of the best quarters ever for the company and its gaming unit.
During the three-month period that concluded on September 30th, Xbox generated $3.61 billion, setting a first-quarter record. 77% of all revenues ($2.79 billion) came from content and services. The other $813 million was generated by hardware sales, which are up 13% year-over-year.
“In a world facing increasing headwinds, digital technology is the ultimate tailwind,” said Satya Nadella, the CEO of Microsoft. “In this environment, we’re focused on helping our customers do more with less while investing in secular growth areas and managing our cost structure in a disciplined way.”
TweakTown said that Microsoft credited Xbox Game Pass revenues for helping stabilize the content & services segment. However, the organization did not provide an update on the number of Xbox Game Pass subscribers. As of January 2022, the service reportedly had over 25 million users.