Microsoft’s video game revenue fell 7% for the quarter ended June 30, 2022, in line with estimates. Despite this decline, Xbox’s revenue for the quarter was €3.4 billion, the second-best result for the fourth financial quarter. While Game Pass continues to gain subscribers, game and content sales are down 6% due to lower engagement and lower monetization for in-house and third-party games.
At the same time, console revenue was down 11% from the same quarter a year earlier. Usually console sales don’t expect a decline in the second year, but the circumstances are obviously special in the case of machines of this generation, the progress of which depends largely on the available stocks. In the absence of information on the number of consoles distributed, it is also possible that the volumes of machines sold are similar and that the drop in turnover is due to the greater share of the Xbox Series S.
The Xbox series is still ahead of previous Xboxes.
What’s certain is that despite the shortage, the Xbox Series continues to outsell any other previous-gen Xbox consoles so far. In addition, CEO Satya Nadella confirmed during his conference call that the Xbox Series outperforms the PS5 in North America for the entire period October 2021 to June 2022 (three quarters). Note that the CEO is based here on the number of consoles sold, with the PS5 ranking first in year-to-date value, according to NPD calculations.
Thus, at the end of the fiscal year from July 2021 to June 2022, Microsoft’s video game turnover reached a new record of 16 billion euros against 15.2 billion euros a year earlier. A figure that could still be largely surpassed by that of the new annual event, as this is the period in which Microsoft must complete its acquisition of Activision Blizzard.
Otherwise, Microsoft as a whole doesn’t look too miserable at the top of its cloud with €196 billion in annual revenue (up 19%), operating income of €82.4 billion (up 21%) and net income of €71.8 billion. euro (growth by 16%).
Xbox: Revenue Growth by Fiscal Year
- July 2014 – June 2015: €8.9 billion
- July 2015 – June 2016: €9 billion
- July 2016 – June 2017: €8.9 billion
- July 2017 – June 2018: €10.2 billion [Lancement du Xbox Game Pass]
- July 2018 – June 2019: €11.2 billion [Lancement du Xbox Game Pass Ultimate]
- July 2019 – June 2020: €11.4 billion [Le Xbox Game Pass atteint les 10 millions d’abonnés]
- July 2020 – June 2021: €15.2 billion [Lancement de la Xbox Series + acquisition de Bethesda]
- July 2021 – June 2022: €16 billion. [Le Xbox Game Pass atteint les 25 millions d’abonnés]