What you need to know
- Microsoft shared its financial results for the fourth quarter of fiscal year 2023.
- Gaming revenue is up 1% year-over-year, or an increase of $36 million.
- Xbox content and services revenue is up 5%, while Xbox hardware revenue decreased by 13%.
Xbox revenue is staying steady this quarter.
Microsoft shared its financial results for the FY23 Q4 period ending June 30, 2023, revealing that gaming revenue is up 1% year-over-year, or $36 million. Xbox content and services revenue was up 5%, driven by growth in third-party content and Xbox Game Pass. This offset a decline in Xbox hardware revenue, which was down 13%.
This is an improved result compared to the prior quarter. In the FY23 Q3 period, Xbox gaming revenue was down 4% year-over-year, while Xbox hardware revenue was down 30%.
During the conference call accompanying the earnings release, Microsoft CEO Satya Nadella noted that the company was looking forward to the launch of Bethesda Game Studios' Starfield in September, adding that Xbox Game Pass usage in hours played was up 22% year-over-year.
Microsoft reported $56.2 billion in revenue for the quarter overall, up 8% for its best fiscal quarter ever.
Windows Central's take
Results being improved compared to the prior quarter aren't surprising at all, considering June saw the launch of major games like Diablo 4 and Street Fighter 6.
Looking ahead, Microsoft is definitely internally counting on the impending closure of the Activision Blizzard acquisition in the coming weeks to massively ramp up Xbox earnings. Naturally, Microsoft will not include anything from that acquisition in public expectations, since it simply isn't done yet.
The formula is there for success, but Microsoft has to deliver big games and increase the supply of available Xbox Series X consoles. During the Xbox Games Showcase 2023 back in June, Microsoft Gaming CEO Phil Spencer noted that console supply was increasing.
