Sony’s PS5 not the only console to benefit from an improved supply chain this year. Xbox console sales are also growing, according to the company’s first-quarter earnings report.
Microsoft doesn’t usually give hard numbers, but the company reported that hardware sales were up 13% in the July-September period compared to the same period last year. For some context, the same period last year (2021) saw an increase of 166% compared to the previous period that (2020), that’s when Xbox One is in its final stages and Xbox Series WILL and X is yet to be released.
To put it more simply, Microsoft sold a bunch of Xbox in the first Q1 following the launch of new hardware, and now, a year later, it’s selling even more.
For further comparison, Microsoft reported that hardware sales last quarter fell 11% year over year – so a 13% increase is a sign that something is different this quarter. It’s likely unrelated to a major software launch, as Xbox didn’t really have any momentum during that time and sales of first- and third-party content both dropped. In fact, total revenue from its content services fell 3%, with the decline in content and hours of engagement offset by the increase in Game Pass subscriptions.
There are more possibilities here supply chain is loosening After many years of struggle with getting the microchips needed for graphics cards and other technology products. We already know how this has affected Sony’s PS5and it’s no surprise that Xbox hardware will outsell as well.
In total, Xbox reported $3.61 billion in revenue for the gaming segment last quarter, up only slightly from last year, making it a record first quarter for the segment. Overall, Microsoft’s total revenue reached $50.1 billion, up 11% year-on-year.
Update 2:48 p.m. PT: During today’s earnings call, CEO Satya Nadella revealed that special PC Game Pass subscriptions are up 159% from the same time last year – the PC service launched in the summer of 2019. says more than 20 million people have used the Xbox cloud game service to date.
Update 3:07 p.m. PT: Microsoft has announced its forecast for the next quarter for the games segment, which expects revenue to decline in the low to mid-teens due to a pushback from a series of releases by Microsoft. first party in the same period last year. This is expected to be offset by Xbox Game Pass subscriber growth. And revenue from content and services is expected to decline among low- to mid-teens. The company did not release any hardware instructions.
Rebekah Valentine is an IGN news reporter. You can find her on Twitter @duckvalentine.
