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News hardware & software 27 October 2021, 22:08

author: Michael Zegar

Xbox Brand Records Its Best Fiscal Q1 in History

The Xbox brand recorded the best first fiscal quarter in its entire history. It owes this to, among other things, an increase in the popularity of consoles and services. Additionally, Microsoft revealed its investment plan.

IN A NUTSHELL:
  • Xbox reported revenue growth of 16% over the previous fiscal first quarter;
  • Thus, the first quarter of fiscal year 2022 turned out to be a record-breaking quarter for the brand;
  • The company owes this mainly to the huge increase in sales of its consoles.

Xbox is finally able to proudly stand up to the competition. Xbox's new revenue report only confirms this statement. The first quarter of fiscal year 2022 (from July 1 to September 30) turned out to be a record-breaking quarter in the history of the brand. All thanks to a huge increase in console sales.

"A fiscal year (or financial year, or sometimes budget year) is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many jurisdictions require company financial reports to be prepared and published on an annual basis but generally not the reporting period to align with the calendar year." Source: Wikipedia.

Xbox Brand Records Its Best Fiscal Q1 in History - picture #1
Xbox's first quarter revenue. Source: TweakTown.

Since Xbox's transformation from a console-only term to a cross-platform services ecosystem, Microsoft has enjoyed year-over-year revenue growth (seen in the chart above). Huge contributors here are the Xbox Game Pass subscription and the Xbox Cloud Gaming service, which enable us to play games in the cloud.

Xbox revenue amounted to $3.593 billion, up 16% ($501 million) from the previous year's first quarter and a new record for the company for the quarter. Microsoft says that it owes this mainly to the huge increase - of as much as 166% - in sales of its consoles, thanks to the growing popularity of the Xbox Series X/S. It's no surprise, then, that the company may already have another device from this family in mind.

Xbox Brand Records Its Best Fiscal Q1 in History - picture #2
Xbox's annual gaming revenue. Source: TweakTown.

Services and content revenue grew by 2% thanks to increasing number of Xbox Game Pass subscribers and first-party titles (released by entities owned by the Redmond giant), partially offsetting a decline in third-party game sales - which was fueled by the end of a "quarantine" related to the Coronavirus pandemic.

Additionally, Microsoft increased its investment in research and development by 14% ($673 million), a result of growing interest in cloud-based services - including Xbox Cloud Gaming. Revenue growth from Microsoft's gaming and cloud-based solutions helped increase the company's revenue by 24% in the July-September period.

Xbox Brand Records Its Best Fiscal Q1 in History - picture #3
Source: TweakTown.

Also worth mentioning is the (also) the record-breaking fiscal year 2021, in which Xbox earned a remarkable $15.37 billion - the most in the history of the brand. Well, there's nothing left for us to do but wish the company continued success.

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