Today Microsoft revealed the financial results of their first quarter of 2024. The overall revenue of the company grew 13 percent to 56.5 billion dollars, while their operating income grew 25 percent to 26.9 billion dollars.
Gaming revenue grew 9% compared to the same quarter last year, with hardware revenue down 7 percent and software and subscription revenue up 13 percent. This is driven by first-party content and Game Pass subscriptions.
These results do not include the revenue and operating income from Activision Blizzard. The release of Starfield is included in these numbers, with the quarter ending on September 30th.
Xbox's Q1 2024 (July to September) was the highest Q1 ever reported for the brand.
Q1 2024 did over $3.9B, which puts it at the same level as October to December 2017, and is now the highest non holiday quarter for Xbox pic.twitter.com/VYJxDD2UoY
The images below show the slides from the earnings call slides regarding More Personal Computing. This is division includes Xbox. The entire press release can be found here.
Itâs really weird to see the whole gaming revenue keeps increasing while the hardware sales continues to decline. You would never expect the same case for Nintendo or Playstation. Not sure if itâs good or not.
I expect growth in both hardware and software, Starfield and Forza will both have legs (and I think season 5 and promotions for Halo Infinite will drive people on the platform) and with discounts on Series X in Europe as well as USA, we could see Xbox making their best holidays (and donât forget games sales on Steam, which with Starfield could be massive too !)
Right, but they didnât have enough first party software to push to help offset those losses. Xbox is currently hitting their strive with 1st party, so having a good amount of consoles(maybe even just matching previous shipments), to go along with them could give them both.
Iâm happy to see that their revenue keeps growing and when ABK revenue is accounted for Iâm sure there will be a substantial jump.
So the numbers arenât bad but the console numbers are and I just wish they would find a way to sell more consoles, that seems to bother some people here but some of you just have to accept and make peace with the fact that there are fans who want to see Xbox hardware doing better, itâs kind of a shame too because Series S/X should be doing better numbers than the Xbox One but it just hasnât for a while now, I donât know how they can get back to at least Xbox One numbers at this point though, I feel like they would need like 5 AAA high quality exclusives a year to get back to that.
Microsoft sees Xbox hardware as just another entry point into the ecosystem. The fix for the hardware revenue is simple; Force people to buy the hardware through old school console only exclusivity. Since thatâs not their MO, the hardware is going to continue to slide because that forced âincentiveâ to buy a console isnât there.
