Microsoft Gaming Revenue Grows 9% As Games & Game Pass Lead the Charge While Xbox Hardware Declines

Microsoft's gaming revenue grew 9% year-on-year with Games and Services driving revenue while Xbox Hardware declined. 👀

Published: October 24, 2023 4:16 PM /


A view of the Xbox Series X and S

Microsoft announced its financial results for the first quarter of the fiscal year 2024, including the traditional details about the performance of its Xbox business. 

The Xbox business is part of Microsft's "More Personal Computing" Business and below you can find the slides about that segment.

We also get some details about the specific performance of the gaming business as a whole, Xbox hardware, and Xbox content and services, which include games, microtransactions, and subscriptions like Game Pass.

Microsoft More Personal Computing Financials Q1 2024 Slide 1

Microsoft More Personal Computing Financials Q1 2024 slide 2

We notice that quarterly gaming revenue as a whole grew 9% year-on-year to $3,919 million, and content and service revenue saw a 13% improvement year-on-year driven by first-party content and Xbox Game Pass.

The only drop is hardware revenue, which declined 7% year-on-year due to lower volume of sales partly offset by the higher price of consoles sold.

Both growth figures for gaming revenue and content and service revenue are above the expectations spelled out at the previous financial conference call in July.

Looking at Microsoft as a whole corporation, all figures are in the black with revenue increasing 12% year-on-year and operating income growing 24% year-on-year.

Microsoft Financials for Q1 2024 (company as a whole)

Today's date is related to the quarter between July 2023 and September 2023. While Microsoft is one of the fastest tech companies to report its financials, there's always a bit of lag.

The full presentation slides can be found on Microsoft's investor website and you can check out our article from July to check out the results in the previous quarter, in case you want to compare.

It's worth mentioning once again that Microsoft closed its acquisition of Activision, Blizzard, and King a few days ago, while the American FTC remains opposed and intends to continue its legal action against the merger. It's worth mentioning that the purchase price has not been allocated in the results presented today.

Activision Blizzard's results will be included in Microsoft's financial results starting with the current quarter (which will likely be published in January) and will also be reported as part of the More Personal Computing segment.

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