According to Microsoft’s latest financials, the release of Xbox Series X and S has contributed to a massive increase in revenue for the company’s gaming division.
The first full quarter of sales for Xbox Series X and S look to be a success for Microsoft. A 232% increase in gaming hardware revenue can be attributed to the release of both consoles, which remain in short supply at retail.
In an investor call following the publication of Microsoft’s FY21 Q3 earnings, CFO Amy Hood added that the worldwide chip shortage is limiting the company’s ability to manufacture enough next-gen Xbox systems to meet demand. Supply is likely to be constrained until the quarter beginning June 2021.
Although the hardware revenue increase is impressive, it’s worth noting that sales were stagnant during the equivalent period last year. This was most likely due to consumers holding back on console purchases in anticipation of new Xbox systems.
Revenue from Xbox Content and Services is up by $739 million. Microsoft credits this increase to sales of third and first-party games – particularly Minecraft – and Xbox Game Pass subscriptions.
Overall, the Xbox division posted $3.6 billion in revenue. That’s an increase of $1.2 billion, up 50% year-on-year.