Business is booming at Microsoft, as the company has just posted the first quarter (July to September 2023) of its 2024 fiscal financial results. While there have been a few misses, overall, revenue is up 13% and net income has seen a 27% increase thanks in part to Microsoft’s cloud services, OEM revenue, and the Xbox division that recorded its highest-ever Q1 and biggest non-holiday quarter overall.
On the gaming side, Xbox hardware revenue declined 7% even with the launch of a new Xbox Series S console that increased the available storage capacity on that device from 512GB to 1TB. The good news here is that Xbox content and services revenue rose by 13% and overall gaming revenue is also up 9%. While Game Pass numbers still aren’t being shared by Microsoft, it looks like the subscription service is still on the rise.
The last big update from Microsoft about Game Pass was back in January 2022 when the company announced that it had grown to 25 million subscribers, and with 2023 seeing the launch of games like Starfield, those numbers have contributed to the Game Pass gains.