Xbox FY23 Q4 gaming revenue increased 1% year-over-year
Up $36 million.
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What you need to know
Xbox revenue is staying steady this quarter.Microsoft shared itsfinancial resultsfor the FY23 Q4 period ending June 30, 2023, revealing that gaming revenue is up 1% year-over-year, or $36 million. Xbox content and services revenue was up 5%, driven by growth in third-party content andXbox Game Pass. This offset a decline in Xbox hardware revenue, which was down 13%.
This is an improved result compared to the prior quarter. In theFY23 Q3 period, Xbox gaming revenue was down 4% year-over-year, while Xbox hardware revenue was down 30%.
During the conference call accompanying the earnings release, Microsoft CEO Satya Nadella noted that the company was looking forward to the launch of Bethesda Game Studios’Starfieldin September, adding that Xbox Game Pass usage in hours played was up 22% year-over-year.
Microsoft reported $56.2 billion in revenue for the quarter overall, up 8% for its bestfiscal quarter ever.
Windows Central’s take
-Xbox Game Pass Core: Price and details-The Wandering Village is headed to Xbox Game Pass-Xbox Game Pass Friends & Family preview ends in August
Results being improved compared to the prior quarter aren’t surprising at all, considering June saw the launch of major games likeDiablo 4and Street Fighter 6.
Looking ahead, Microsoft is definitely internally counting on theimpending closure of the Activision Blizzard acquisitionin the coming weeks to massively ramp up Xbox earnings. Naturally, Microsoft will not include anything from that acquisition in public expectations, since it simply isn’t done yet.
The formula is there for success, but Microsoft has to deliver big games and increase the supply of available Xbox Series X consoles. During theXbox Games Showcase 2023back in June, Microsoft Gaming CEO Phil Spencer noted that console supply was increasing.
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Samuel Tolbert is a freelance writer covering gaming news, previews, reviews, interviews and different aspects of the gaming industry, specifically focusing on Xbox and PC gaming on Windows Central. You can find him on Twitter@SamuelTolbert.
