Xbox Sees Record Q1 for Revenue Due to First-Party and Game Pass, Hardware Revenue Drops 7% - Sales
by William D'Angelo , posted on 01 November 2023 / 9,504 Views
Microsoft has released its earnings report for the first quarter of the 2024 fiscal year, which ended up September 30, 2023.
Xbox gaming revenue increased by $309 million or nine percent year-on-year due to "growth in Xbox content and services."
Xbox content & services revenue increased 13 percent. This was due to "growth in first-party content and Xbox Game Pass." Xbox hardware revenue declined seven percent due to lower number of consoles sold that was partially offset by higher price of consoles sold.
Xbox gaming revenue and Xbox content & services both beat the forecast, which was mid single digits and mid to high single digits, respectively. This was due to the strong launch of Starfield. This was also the highest ever quarter one for Xbox gaming revenue with an estimated $3.9 billion in revenue.
Microsoft CEO Satya Nadella revealed the launch of Starfield led to a single day record of new Xbox Game Pass subscriptions. The latest game from Bethesda has surpassed 11 million players and nearly half of all hours played were on PC.
Overall, Microsoft reported for the quarter GAAP revenue up 13 percent year-over-year to $56.52 billion and net income up 27 percent to $22.29 billion.
Microsoft's forecast for the second quarter of the 2024 fiscal year expects to see major growth thanks to the completion of the Activision Blizzard acquisition. Total Xbox gaming revenue is expected to grow in the mid to high 40's (45%-49%) and Xbox content & services revenue to grow in the mid to high 50's (55%-59%).
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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Any release of official numbers? at least some answer if it's in front of the xbox one? I believe it must have already surpassed the original Xbox in terms of shipments.
Series consoles are behind XB1 launch aligned last we heard. Series is probably still ahead of the 360, but not for a lot longer.
Now what game came out this quarter that could have had an effect...oh yeah Starfield.
first quorter ? Am I missing something or the first quorter have to be that from april to june ? and this have to be the second one that is from july to september ?
so obviously series x needs a price cut.. the 360 and the one were much cheaper this far in the cycle.
insane profits overall.. makes more in a quarter than sony in a whole year.
I don't understand why the disagrees. You are correct, Micorsoft in general has much greater profitability than Sony, it's a company worth trillions.
MS is so rich they burn money on XBOX, which is billions in the red and will probably take decades to return the investment, if they ever manage to do it.
Shareholders don't authorize a deal worth 70bn for a division that is haemorrhaging money.
Microsoft must be doing something right
They bought game studios that each generate revenue. If you used to have 5 studios and now have 20 then yeah you’ll generate a lot more revenue. Those studios all cost money to buy, and all have upkeep costs. It’s almost certainly a record breaking quarter for costs as well as revenue but they won’t be so eager to spell that out.
Buying the studio would not affect profit, it's capital expenditure, but yes upkeep would be higher.
They’d still be required to write down the cost over a certain period of time.
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