Microsoft has announced its fiscal results for the third quarter of FY2023 which of course means it’s time to break down the Gaming segment. The below results represent January 1st through March 31st which is the third quarter in Microsoft’s fiscal results. Generally speaking they were good news for Xbox and outperformed forecasts though they do highlight some issues on the hardware front.
- Xbox hardware revenue is down 30%
- According to Microsoft this was expected and partially due to continued shortages in areas.
- Xbox content and services revenue is up 3% (5% in constant currency)
- Microsoft CEO Satya Nadella stated that the quarter set a record for monthly active users and devices. He also noted that Xbox’s gaming subscriptions such as Game Pass approached $1 billion in revenue in the quarter.
- Overall, Xbox gaming revenue is down 4%
- Microsoft CFO Amy Hood is bullish on expectations for the 4th quarter saying she expects gaming revenue growth “in mid to high single digits,” and “low to mid teens Xbox content and services revenue growth” thanks in part to Xbox Game Pass and third-party content.
With Redfall, their June showcase, and continued updates to Game Pass, we’ll revisit the expectations in July.