Xbox Revenue Jumps 51% Year-on-Year, Hardware Revenue Falls 31%

by
William D’Angelo
, posted 1 hour ago / 508 Views

Microsoft has released its earnings report for the third quarter of the 2024 fiscal year, which ended up March 31, 2024.

Xbox gaming revenue increased by 51 percent year-on-year to $5.45 billion. This includes “55 points of net impact from the Activision acquisition.” This is better than Microsoft’s expectations, which forecasted revenue to grow in the low 40s percent, with 45 points of impact from Activision Blizzard.

Xbox content & services revenue increased 62 percent compared to the same quarter a year ago. This includes “61 points of net impact from the Activision acquisition.” Once again, this is better than the low to mid 50s percent forecast.

Xbox hardware revenue fell 31 percent compared to a year ago. This is inline with expectations, which was to see a decline year-on-year.

Overall, Microsoft reported for the quarter GAAP revenue was up 17 percent year-over-year to $61.86 billion and net income was up 20 percent to $21.94 billion.

Microsoft CEO Satya Nadella in the company’s earnings call revealed gaming set third quarter records for game streaming hours, console usage, and monthly active devices. There were over 10 million hours played of Diablo IV in its first 10 days available on Game Pass.

“We are committed to meeting players where they are by bringing great games to more people on more devices,” said Nadella. “We set third quarter records for game streaming hours, console usage, and monthly active devices.

“Last month we added our first Activision Blizzard title Diablo IV to our Game Pass service. Subscribers played over 10 million hours within the first 10 days, making it one of our biggest first-party Game Pass launches ever.”

Nadella added Microsoft had seven of of the top 25 games on the PlayStation Store earlier this month, which was more than any other publisher.

“Finally, we’re expanding our games to new platforms, bringing four of our fan favorites to Nintendo Switch and Sony PlayStation for the first time. In fact, earlier this month we had 7 games among the top 25 on the PlayStation Store, more than any other publisher.”

Microsoft’s forecast for the quarter ending June 30, 2024 expects total Xbox revenue to grow in the low to mid 40s percent year-on-year, with 50 points of impact from Activision Blizzard. Xbox content & services is expected to grow in the high 50s percent, with 60 points of impact from Activision Blizzard. Xbox hardware revenue is expected to decline.

A life-long and avid gamer, William D’Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.