Microsoft’s Xbox Series X/S is making business boom. According to Microsoft CEO Satya Nadella, it’s the most successful Xbox launch ever.
According to an earnings call last Tuesday, Microsoft’s Xbox is growing on all fronts. The Xbox Series X/S console allowed for an increase of 51% in its gaming sectors.
Nadella notes it’s the “most successful in our history with the most devices ever sold in a launch month.”
Even then, Xbox still expects potential shortages due to a supply issue.
Microsoft earned enough to pay for Zenimax deal twice
Microsoft’s gaming revenue had an explosive growth for its second fiscal quarter. The numbers include a $15 billion profit, which can pay for the Zenimax deal twice over. The development also happened on all fronts.
Revenue for Xbox Game Pass increased, with an additional 3 million in subscriptions since September 2020.
Console sales also powered the $43.1 billion total revenue for the company as a whole.
The Game Pass is a crucial strategy for Microsoft’s Xbox for next-gen consoles. By offering a library of games for a measly $15 subscription, players are incentivized into working within the Microsoft ecosystem.
“The launch of Xbox Series X and Series S was the most successful in our history with the most devices ever sold in a launch month,” Nadella said in the earnings call.
“We are gaining console share as gamers recognize the value of our broader ecosystem.”
COVID-19, holidays reason for explosive Xbox profits
The addition of three million new subscribers came as a result of a few things. The Xbox Series X/S launch is chief among them, but the market growth also came from the holidays.
As COVID-19 still surges on, more people are looking into better value propositions. Games Pass offers excellent value for its price. This, together with the holiday season, spurred extreme growth for the platform.
Microsoft announced that it received $5 billion in revenue for its gaming category. This growth is the highest value ever earned by the category in any quarter in its history.
An additional $2 billion came from its third-party sales, so Microsoft is reaping its benefits.
The addition of Bethesda titles on the Games Pass and the Zenimax deal also boosted the brand. Since the announced acquisition, players were happy to reward the Xbox brand’s aggressive build-up.
Recently, Xbox dialed back on its planned price hike for its Live Gold subscription. The hike would’ve increased Live Gold’s prices by as much as double of the original price. Microsoft pulled back due to the resulting furor.
Even then, Microsoft still expects hardware shortages for the Xbox Series X/S over the coming months.
Featured image courtesy of Xbox/Youtube Screenshot