Microsoft Reports on Xbox Gaming Revenue for the 2nd Quarter

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This afternoon, Microsoft held it’s quarterly earnings call and as we always do here at SG, we tune in and then summarize the core findings as they relate to Xbox (as we also do for PlayStation and Nintendo).

  • Gaming revenue was $3.3 billion (down 21% year over year).
    • Microsoft attributes this decline to a decrease in hardware sold — a predictable drop, given that this represents the final holiday season of the current console generation. This drop is also in line with what CFO Amy Hood suggested during the company’s Q1 earnings call.
  • Xbox content and services down $295 million (representing 11%).
    • Microsoft says this is “high prior year comparable, primarily from a third-party title.Gamesindustry.biz says “It is likely that this third-party title is Fortnite.”
  • Hundreds of thousands of people” are partaking in the xCloud trials.
  • Xbox Game Pass subscriptions “nearly doubled” (though specific figures weren’t mentioned).
  • Xbox Live monthly active users “reached a new record” (again the specific figure isn’t shared).

Our Take

Overall there’s nothing too notable in the figures. As expected towards the tail end of the generation, overall revenue will decrease. Though it is promising for Xbox that Game Pass and Live subscribers continue to increase which they are likely using to lay the foundation for next-generation. The fact that Game Pass subscribers doubled in a quarter is truly impressive.

Author: Seasoned Gaming

Covering the videogame industry with daily content, unique opinions, and as always, no ads or filler.

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