Microsoft has been doing extremely well over the last three months. Microsoft’s earning report included some numbers that shows how well Microsoft’s gaming division is doing.
The increased spending on game during the COVID-19 pandemic has definitely done some good for Microsoft. This is the first earning report released since the company launched the Xbox Series X/S in November. Those systems boosted Xbox hardware sales by 86%.
Hardware revenue would have been even higher if product shortages weren’t an issue. Analyst Daniel Ahmad said he thinks the Xbox Series X/S didn’t move as many units right away than the Xbox One did over the same timeframe.
One thing that can be inferred from the figures, which isn’t really surprising, is that Xbox didn’t ship as many Series X|S consoles as they did Xbox One’s in the same timeframe.— Daniel Ahmad (@ZhugeEX) January 26, 2021
This has been reflected in global sell through data too. Mainly due to production it seems.
Phil Spencer has already apologized for the shortage of stock, and has pledged that Microsoft is trying their best to restock as soon as possible.
Revenue for content and services rose by 40%. This includes Game Pass subscriptions, third-party game sales and first-party game sales. The percentage uptick was driven mostly by the third-party sales, since Microsoft takes a cut from every game sold on Xbox. Revenue in total for Xbox rose by 51%, compared to the same period from last year.
As is the typical routine for Microsoft, the company didn’t share the specific sales numbers for the Xbox consoles or the numbers for Xbox Live and Xbox Game Pass subscribers.
Across all business units, Microsoft brought in $43.1 billion for this period (+17%) and posted a profit of $15.5 billion (+33%). People on social media pointed out the profit Microsoft made is enough to pay the $7.5 billion for the acquisition of ZeniMax twice, with money to spare.