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Xbox Gaming Revenue Dropped 7% in June Quarter, Xbox Game Pass Continues to Grow

Xbox Gaming Revenue Dropped 7% in June Quarter, Xbox Game Pass Continues to Grow - News

by William D'Angelo , posted on 01 August 2022 / 3,873 Views

Microsoft has released its earnings report for the fourth quarter of the 2022 fiscal year, which ended up June, 2022.

Xbox gaming revenue decreased seven percent or $259 million year-over-year. This was due to a drop in Xbox content and services and Xbox hardware. This is in-line with what Microsoft expected for the quarter.

Despite the drop in Xbox gaming revenue this is the second best fourth quarter ever for Xbox. Xbox hardware revenue did drop 11 percent.

Xbox Content & Services revenue decreased six percent. This was due to "lower engagement hours and monetization in third-party and first-party content." This was partially offset by growth in the number of Xbox Game Pass subscriptions.

Xbox Gaming Revenue Dropped 7% in June Quarter, Xbox Game Pass Continues to Grow

Overall, Microsoft reported revenue up 12 percent year-over-year to $51.9 billion and net income up two percent to $16.7 billion.

The latest VGChartz estimates put Xbox Series X|S sell-through at 15.79 million as of July 16, 2022. The Xbox Series X|S continues to be the fastest-selling Xbox console generation ever as it is tracking ahead of the original Xbox, Xbox 360, and Xbox One.


A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.


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8 Comments
jvmkdg (on 26 July 2022)

this means that xbox hardware has dropped 11% compared to the first quarter this is a good parameter for vg chartz. Although I would like the official sales number

  • +1
Libara (on 26 July 2022)

At this rate they will make back the money they spent on ABK before the deal actually goes through.

  • +1
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Shatts trunkswd (on 26 July 2022)

Microsoft is crazy, no wonder they're part of GAFAM. I wonder where their most cash flow is from, cloud business? Office? Windows?

  • 0
Libara Shatts (on 26 July 2022)

My guess cloud is their biggest earner.

  • 0
aTokenYeti Shatts (on 26 July 2022)

Number and #2 by a wide margin are cloud computing and enterprise software. Microsoft makes the vast majority of their money selling products and services to other businesses, not selling products to consumers

  • +1
LudicrousSpeed (on 26 July 2022)

No big software and still their second biggest quarter ever. Imagine when all the ActivisionBlizzard and Bethesda stuff is firing out.

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