Sony’s PS5 isn’t the only console to benefit from supply chain improvements this year. Xbox console sales are also on the rise, according to the company’s first quarter earnings report.
Microsoft doesn’t usually give hard numbers, but the company reports that hardware sales for the July-September period were up 13% compared to the same period last year. Depending on the circumstances, the same period last year (2021) saw a whopping 166% increase compared to the previous period. that (2020) was when the Xbox One was on its last leg and the Xbox Series S and X were yet to be released.
To put it more simply, Microsoft sold a lot of Xboxes in the first quarter after the new hardware launch, and a year later they’re selling more now.
In further comparison, Microsoft reported an 11% year-over-year decline in hardware sales last quarter. So the 13% increase indicates something different this quarter. Xbox didn’t really have any notable activity during that period, and first- and third-party content sales declined, so it’s unlikely to be related to a big software launch. A 3% decrease, but the decrease in content and engagement time was offset by an increase in Game Pass subscriptions.
The most likely here is supply chain loose After years of struggle to get the microchips needed for graphics cards and other tech products. No wonder it sells better
In total, Xbox reported revenue of $3.61 billion in the gaming segment for the quarter. This is only a slight increase from last year, making it a record first quarter for the segment. Overall, Microsoft’s revenue totaled $50.1 billion, up 11% year over year.
Update at 2:48 PM PT: On today’s earnings call, CEO Satya Nadella specifically noted that subscriptions to PC Game Pass, a service for PCs launched in the summer of 2019, are up 159% from the same time last year. clarified. He also said that over 20 million people are using his Xbox cloud gaming. service so far.
Update at 3:07 PM PT: Microsoft has released its next quarter forecast for the gaming segment. Faced with a number of first-party releases for him around the same time last year, expect earnings to decline in his late to mid-teens. This is expected to be offset by an increase in Xbox Game Pass subscribers. Also, content and services revenue is expected to decline in the late to mid-teens. The company did not provide hardware guidance.
Rebekah Valentine is a news reporter for IGN. you can find her on her twitter @duck valentine.
