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In the most recent financial report from Microsoft, which covers the first quarter of FY23 that concluded on September 30, 2022, Xbox games revenue increased by 4% over the prior year.
Revenue from Xbox hardware climbed 13%. Once more, this was a result of the Xbox Series X|S’s continuing global demand. Xbox’s revenue from content and services, meanwhile, is down 3%. the expansion of Xbox Game Pass is balancing this out in the following ways:
Due to a fall in native and third party content, “…decreased engagement times and greater commercialization were largely countered by increased Xbox Game Pass subscriptions.”
During the same period, Microsoft’s total revenue was $50.1 billion, better than the previous estimate of $49.7 billion. Despite a decline in first-party content this quarter, it looks like Xbox will improve first-party content in 2023 with releases like Forza Motorsport, Starfield, and Minecraft Legends. We are also in the process of completing the acquisition of Activision Blizzard.