You can hardly have missed it: The demand for next-gen consoles is enormous. And that benefits manufacturers like Microsoft, because the Xbox Series X / S ensures a noticeable increase in sales in the company’s gaming division.
Aiming high with the Xbox Series X.
Due to the high demand, Microsoft recorded an increase of 16 percent in the quarter that ended on September 30, 2021 compared to the first quarter of the last fiscal year. That comes from Microsoft’s recently released quarterly results (thanks, VGC).
Overall sales of Xbox hardware increased 166 percent year over year – the Xbox Series definitely played its part. Xbox services and content grew slightly less at just two percent. Microsoft attributes this to “the growth in Xbox Game Pass subscriptions and first-party titles has been partially offset by declines in third-party titles.”
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In a conference call on these quarterly results, CEO Satya Nadella said that the gaming division had achieved a record in terms of revenue and engagement and already gave a small glimpse of the holiday season.
“This Christmas season will bring our largest offering of content and exclusive games ever, with three new Triple-A titles, including Halo Infinite, available through the Xbox Game Pass subscription service, which continues to be the best value – For money in gaming. ” A little self-promotion never hurts.
Microsoft also expects increasing numbers in the coming quarter
Amy Hood, CFO of Microsoft, expects “high single-digit sales growth” in the coming quarter. After all, there is already a high figure from last year and the new consoles.
“And for Xbox content and services, we expect revenue growth in the mid-tens with a heavy exposure to the Xbox platform in a holiday quarter that sees multiple triple-A titles appearing,” said Hood.
At this point, she noted that “console sales continue to be affected by uncertainty in the supply chain. It will be a challenge that we will have to work on for quite a while.”
Just last week, Microsoft published a financial document showing that the company had missed its target of new subscribers for the Xbox Game Pass by ten percent. Instead of about 48 percent growth, the Xbox manufacturer recorded only about 38 percent.