Microsoft CEO Satya Nadella has disclosed that in the quarter that ended on December 31, the company surpassed $5 billion in gaming revenue for the first time.
Nadella said that Xbox Live had more than 100 million monthly active users on the conference call with analysts late on Tuesday, while Game Pass only has 18 million subscribers.
This is positive news as “we expand our potential to advance the world’s three billion gamers wherever they play. The launch of Xbox series X and series S has been the most successful in our history with the most devices ever sold in a launch month,” Nadella said after the company declared a healthy December quarter result. On November 10, the Microsoft Xbox Series X and Series S game consoles went on sale worldwide and are experiencing a massive demand.
As they turn to us to target more customers and scale the games using the power of our cloud, game developers are also benefiting. For the first time this quarter, we surpassed $2 billion in revenue from third-party titles,”Game developers are benefiting too as they turn to us to reach more players and scale the games using the power of our cloud. We exceeded $2 billion in revenue from third-party titles this quarter for the first time,”
The Microsoft CEO said they are changing how games are played and viewed “bringing cloud gaming and game pass to iOS devices and Windows PCs over the next few months”.
“We are pleased with the overall growth in our consumer subscriptions with Game Pass and more than 47 million Microsoft 365 personal family subscribers,” he said.
Xbox hardware sales increased by 86 percent, boosted by the introduction of the new console and the gain of reduced price discounts on existing generation consoles.
The high increase in third-party sales, Game Pass subscribers and first-party titles in Xbox software and services revenue increased 40 percent and 38 percent in constant currency,”Xbox content and services revenue grew 40 per cent and 38 per cent in constant currency the strong growth in third party transactions, Game Pass subscribers and first-party titles,”
The company expects sustained deep commitment to the Xbox ecosystem and considerable demand for the Xbox X and S range, which will also be limited by availability.
Microsoft decided last week not to change Xbox Live Gold prices, along with unlocking free to play games for everyone, despite receiving criticism from the gaming community.
In an obvious attempt to convert more customers to its Xbox Game Pass Supreme, the company recently announced that Xbox Live Gold subscription rates would rise in some regions, but the gaming community did not like the price increase, prompting Microsoft to scale back the move.