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Microsoft Boasts Record 120 Million Monthly Active Users for Xbox; Expects YoY Gaming Revenue Decline in Q3

Published: January 24, 2023 6:13 PM

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Microsoft is hosting its financial conference call for investors and analysts, with chief executive officer Satya Nadella and chief financial officer Amy Hood providing more insight into the performance of the Xbox business. 

Nadella boasted "new highs" for Xbox Game Pass subscribers, gaming streaming hours, and monthly active devices. He also mentioned that monthly active users surpassed a record 120 million during the quarter between October 1 and December 31. He also teased details and gameplay to be shared during tomorrow's Developer Direct event

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"In gaming, we continue to pursue our ambition to give players more choice to play great games wherever, whenever, and however they want. We saw new highs for Game Pass subscriptions, game streaming hours, and monthly active devices, and monthly active users surpass a record 120 million during the quarter.

We continue to invest to add value to game pass. This quarter we partnered with Riot Games to make the company's PC and mobile games, along with premium content, available to subscribers.

And finally, we are energized by our upcoming lineup of AAA game launches including exciting new titles from zenimax and Xbox Game Studios, and we'll be sharing details and gameplay at our showcase tomorrow."

Later in the call, Hood provided guidance for the gaming business in the current quarter (between January 1 and March 31). Microsoft expects overall gaming revenue to decline in the high single digits (5-9%) year-on-year due to the comparison with a strong previous year. Xbox Content and Services revenue is expected to decline in the low single digits (1-5%) year-on-year as growth in Xbox Game Pass subscriptions will be "more than offset" by lower monetization per hour in third and first-party content.

Hood also confirmed that Microsoft continues to work toward closing the Activision Blizzard acquisition by the end of the fiscal year (which means by June 31, 2023) pending regulatory approval. 

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If you'd like to hear more about Microsoft's financials, you can check out our dedicated article focusing on the quarterly performance of the Xbox business.  

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Author: | News Editor
Having worked in the industry for over twenty years, Giuseppe is a proud weeb hailing from sunny (not as much as people think) Italy and a veteran gamer since the age of Mattel Intellivision and… Read More