Microsoft has published its sales results for its Q1 in FY24 (July 1st to September 30th, 2023) and it’s managed a record-breaking $3.9 billion USD revenue in its gaming sector, which it says is the highest Q1 result yet for the Xbox brand.
Broken down, it’s a 9% increase in gaming revenue and a 13% increase in Xbox content and services, both naturally driven by a very strong launch for Bethesda Softworks’ massive space-faring RPG, Starfield, which quickly became the studio’s biggest-ever new game launch,
Perhaps less exciting than the success of Starfield, the positive results in Xbox’s service revenue were also driven by price increases for Game Pass that took effect in August, combined with an increase in interest in the service thanks again to the likes of Starfield as well as the launch of Xbox Game Pass Core, the new entry-level tier replacing Xbox Live Gold.
On the hardware side, it’s a less positive story with Xbox hardware revenue down 7% for the quarter, potentially as a result of price increases on the Xbox Series X console and the huge leak of confidential information with saw 2024’s revised Xbox Series X console revealed far earlier than planned, though the latter didn’t occur until near the end of the quarter.
Microsoft FY 2024 Q1:
Gaming revenue up 9% in the quarter.
Above guidance.Equates to ~ $3.9B in quarterly Xbox sales.
That's an all-time Q1 high.Xbox Content & Services rose 13%.
That's also above forecast.
Due to 1st party (Starfield) & Game Pass.Xbox Hardware dipped 7%. pic.twitter.com/nFmBu89eVe
— Dom (@DomsPlaying) October 24, 2023
Microsoft is forecasting its overall gaming revenue grow in excess of 40% and for Xbox content and services to up more than 50% in its Q2, FY2024, thanks to its recent acquisition of Activision Blizzard King.
It’s also debuting a new livestreamed showcase format tomorrow with the Xbox Partner Preview Showcase, where fans will get new looks at the likes of Alan Wake II, Ark: Survival Ascended, Like a Dragon: Infinite Wealth and more – you can find out when and where to watch that right here.
