Microsoft’s video game revenue fell 7% in the quarter ended June 30, 2022, in line with expectations. Despite the decline, Xbox’s quarterly revenue of 3.4 billion euros was its second-best performance in the fiscal fourth quarter. While Game Pass subscribers continued to grow, game and content sales fell 6% due to lower engagement and lower game monetization first party and third party.
Meanwhile, revenue from console sales fell 11% from a year earlier. Under normal circumstances, console sales are not expected to decline in the second year, but for this generation of machines, the situation is clearly special, and its progress depends largely on available inventory. In the absence of information on the number of consoles on sale, it is also possible that a similar number of machines were sold, and the reason for the decline in turnover is that the Xbox Series S has a larger proportion.
Xbox series still ahead of previous Xbox
To be sure, despite the shortage, the Xbox series is still selling better than any other previous-generation Xbox console at this point. Additionally, CEO Satya Nadella confirmed on the conference call that the Xbox series leads the PS5 in North America for the entire period (three-quarters) between October 2021 and June 2022. Note that the CEO here relies on the number of consoles sold, according to NPD calculations, with the PS5 ranking first in value since the beginning of the year.
As a result, 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, compared to 15.2 billion euros in the same period last year. That figure could still be largely beaten by the new annual exercise, as Microsoft has to complete its acquisition of Activision Blizzard in the interim.
Otherwise, Microsoft as a whole does not look too unhappy from Genting, with annual revenue of €196 billion (up 19%), operating profit of €82.4 billion (up 21%) and net profit of €71.8 billion (up 21%). up 16%).
Xbox: Revenue Growth by Fiscal Year
- July 2014 – June 2015: 8.9 billion euros
- July 2015 – June 2016: 9 billion euros
- July 2016 – June 2017: 8.9 billion euros
- July 2017 – June 2018: 10.2 billion euros [Lancement du Xbox Game Pass]
- July 2018 – June 2019: 11.2 billion euros [Lancement du Xbox Game Pass Ultimate]
- July 2019 – June 2020: 11.4 billion euros [Le Xbox Game Pass atteint les 10 millions d’abonnés]
- July 2020 – June 2021: 15.2 billion euros [Lancement de la Xbox Series + acquisition de Bethesda]
- July 2021 – June 2022: 16 billion euros [Le Xbox Game Pass atteint les 25 millions d’abonnés]