Xbox is in great shape before the launch of the X series and Halo Infinite

07/23/2020 Business


Microsoft’s Xbox division is enjoying very strong results lately, due in part to the COVID-19 pandemic that keeps people at home playing. Microsoft reported earnings on Wednesday, and the Xbox division saw revenue increase 64 percent (to $ 1.3 billion).

The increase in sales was led by “growth in Xbox content and services.” Content and service revenue increased by $ 1.2 billion (up 65 percent) due in part to “record commitment” as home stay measures remain in place. Additionally, Microsoft said it enjoyed the “strength” of third-party games, which pay Microsoft to be in their store.

Microsoft CEO Satya Nadella said “it was simply a revolutionary quarter for gaming,” adding that the Xbox Game Pass is seeing “record subscriber growth” on the console and PC. However, it did not provide a new figure beyond the 10 million subscriber number previously announced by Microsoft.

Not only did revenue from content and services rise, but hardware also posted profits, rising 49 percent thanks to the sale of more consoles than before. Microsoft recently discontinued some Xbox models.

These results put Microsoft in a strong position before the launch of Xbox Series X later this year, possibly in November. As you can see in the chart below, Xbox dominated all of Microsoft’s other top business categories when it comes to revenue growth year over year.

Xbox is dominating at Microsoft right now
Xbox is dominating at Microsoft right now

Xbox’s fortune will grow even further with the launch of Xbox Series X and Halo Infinite this holiday season. Microsoft will showcase Halo Infinite and other Xbox exclusives during an event on Thursday.

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