Xbox Gaming Revenue up 51% YoY, Hardware Down 31%

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Microsoft has announced its Q3 quarterly earnings, which revealed that gaming revenue is up 51%, while hardware sales are down 31%.

The company’s gaming revenue of +51% means that it’s a record Q3 for the company.

Cutting to the chase:

  • Xbox gaming revenue is up 51%
  • 55% of its gaming revenue is from Activision
  • Xbox Content and Services is up 62%
  • 61% of its content and services come from Activision
  • Xbox hardware is down 31%

Microsft CFO Amy Hood said that the company expects Xbox hardware to continue to decline next quarter. Total gaming revenue is expected to be in the low mid-40s (50 points from ATVI), while services and content are expected to be in the high 50s (60 points from ATVI).

As rightfully pointed out, Xbox’s considerable increases in revenue stem from its acquisition of Activision Blizzard, which the company acquired for $69 billion last year.

Looking ahead, Xbox’s huge increases will drop to normal levels in the following few quarterly earnings calls, but with the company still yet to fully utilize its massive catalog of acquired IP, including the hugely successful Call of Duty franchise, it’ll paint a better picture of how the company stands.

As for the Xbox hardware, Microsoft teased earlier this year that it has a ‘unique’ and ‘powerful’ next-gen Xbox console lined up.

Earlier this month, Insider Gaming reported that it understands that the company is gearing up for an announcement on its back catalog of games following the acquisition of Activision Blizzard.

For more Insider Gaming coverage, check out the latest news:

  1. Microsoft should buy EA and Take 2 next and get out of the console business. Focus on having the games and services available on all platforms as possible. Xbox doesn’t need to exist.

    1. Exactly they really could use EA right now too because they need the studio support and experience.

  2. Xbox doesn’t need to exist anymore they should go third party. The only thing that would be helpful is support for third party disc drives to play older titles backwards compatible.

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