Despite a global chip shortage and severe supply constraints, Xbox Series has become Microsoft’s fastest-selling consoles to date, beating both the Xbox One and Xbox 360’s sales in a similar timeframe. Overall, Xbox consoles saw a 172% increase in revenue compared to the previous quarter.
Gaming revenue increased $357 million or 11% driven by growth in Xbox hardware, offset in part by a decline in Xbox content and services. Xbox hardware revenue increased 172% driven by higher price and volume of consoles sold due to the Xbox Series X|S launches. – Microsoft Q4 2021 Earnings Release
Microsoft had its fourth-quarter earnings call today in which they reported their financials alongside flaunting Xbox’s record-breaking numbers. CEO Satya Nadella reinstated that Microsoft is “all-in on gaming”, and that they’re committed to increasing their presence in the gaming industry.
Xbox Series X|S launched back in December, a week before the PS5, and has reportedly sold approximately 6.5 million units ever since. That’s considerably more than what both previous versions of Xbox, the Xbox One and Xbox 360 sold in the same life-to-date period. These numbers coincide with earlier reports of Xbox Series X|S selling 1.4 million units in its first 24 hours of launch.
We estimate that the Xbox Series X|S total sell in was 6.5m as of June 30, 2021.
Compared to our estimate of 5.7m for Xbox One and 5.0m for Xbox 360 in the same timeframe.
Supply for Series X|S improved in the past quarter, with hardware revenue up 20% QoQ. https://t.co/ypHqyTqZzo
— Daniel Ahmad (@ZhugeEX) July 27, 2021
Where the Xbox hardware segment saw a healthy boost in sales, the “Content and Services” department took a hit. The revenue was down by 4% year-over-year. That’s a $128 million decrease in total earnings. This could’ve been caused by a lack of third-party content over the past few months, and less enticing games making their way over to Xbox Game Pass.
Xbox content and services revenue decreased $128 million, or 4%, driven by a decline in third-party titles on a strong prior year comparable that benefitted from stay-at-home scenarios, offset in part by growth in Xbox Game Pass subscriptions and first-party titles. – Microsoft Q4 2021 Earnings Release
Speaking of Game Pass, it’s growing rapidly, according to Microsoft. Microsoft also highlighted that Game Pass helped mitigate the offset caused by revenue loss in other areas of the company. However, no subscriber numbers or statistics for Game Pass were officially disclosed. It will be interesting to see how well Game Pass holds its uncontended lead amidst unexpected competition from the likes of Netflix going forward.
It’s genuinely astonishing to witness such groundbreaking numbers for the Xbox Series, especially considering the predicament we’re stuck in right now. Both the PS5 and latest Xbox consoles are difficult to come by due to various factors stirred largely by the pandemic, yet Microsoft has never sold more Xbox consoles in history before. A true testament to how desperate we can get for entertainment when we’re stuck at our homes.