Microsoft recently revealed the financial report of its gaming division of Xbox for the fiscal year 2021. The period running from July 1, 2020 to June 30, 2021 saw some massive additions and purchases for one of the most iconic gaming brands in the world. Following the addition of new consoles, games and services, Microsoft made a major jump in the world of gaming and it shows up on spreadsheets as well.
The company recorded some significant increase in revenue which allowed Xbox to have its best year ever. With these additions, it was inevitable for Microsoft’s gaming division to post one of its biggest figures, thanks to its new console and the many services that players use every day.
Microsoft's Gaming division (Xbox) reported revenue of $15.37 billion in FY 21 (July 1, 2020 – June 30, 2021).
– Best year ever for Xbox
– Revenue up 32.8% YoY
– Primarily driven by $2.3bn increase in software / subscription revenue.
– Series X|S boosted hardware rev 92% YoY pic.twitter.com/hEv2K9IDwk— Daniel Ahmad (@ZhugeEX) July 29, 2021
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READ MORE- OPINION: Xbox Already Won the Console War and It Is Not Because of Game Pass
Xbox reports record revenue in a fiscal year
The financial report showcased a significant rise in revenue, with the year-over-year numbers revealing a 32.8% growth. The primary causes for such a growth came from the hardware department following the release of its latest consoles in the Xbox Series X|S. The consoles provided a serious boost to the revenue with the hardware section gaining a sharp rise of 92%.
During this time frame, the company has sold over 6.5 units around the world. It’s still less than the sales of the PlayStation 5 which reported record sales numbers. The console sold over 10 million units within 8 months following its release. However, Xbox has other humongous sources of revenues including Game Pass and many more.
This was the best April – June quarter ever for the gaming division, even with the tough comp to last year.
– Content & Services spend declined 4% YoY as boost from pandemic normalised.
– Hardware increased 172% YoY and more than offset that content & services decline. pic.twitter.com/cfSj5I6wlm
— Daniel Ahmad (@ZhugeEX) July 29, 2021
Game Pass continues to be massive for Microsoft
Because of the COVID-19 pandemic, gamers around the world made record software purchases. This came in extremely handy for Xbox and its popular subscription service of Game Pass. During the fiscal year, Game Pass had a massive share of the Content & Services revenue of around $12.17 billion. The progress may have declined in the final quarter of the year. But Xbox believes that it will pick up in the upcoming quarter.
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Xbox expects a solid quarter next month, with overall growth in the low double digits, driven by an increase in hardware sales and low single digit growth in content & services.
While console still remains the core platform, Game Pass + Cloud are introducing new entry points.
— Daniel Ahmad (@ZhugeEX) July 29, 2021
The company expects to have more growth this year with the overall revenue having a spike in the low double digits. Similarly, Microsoft forecasts Xbox to have an increase in the hardware sales of the Xbox Series X|S consoles along with a spike in the revenue of Content & Services. With the growth Xbox has had recently, it’s safe to say that the forecast will most likely come true.
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The console war is heating up between PlayStation and Xbox. The PlayStation 5 may have the upper hand in the sales of the consoles. But, everywhere else, it seems like the green platform has full control, and it will probably stay that way for a long time.
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