Xbox X/S Series Drive Good Results of Microsoft's Gaming Division
Microsoft boasts excellent financial results for the previous quarter. Of note is the significant revenue growth from the gaming division, driven by the launches of the Xbox Series X and Xbox Series S consoles.
Microsoft released its financial report for the last quarter of last year. The Redmond giant generated revenue of $ 43.1 billion, which is 17% higher than in the same period of 2019. In turn, the profit amounted to $ 15.5 billion (an increase of 33%). As noted by Gamespot, the corporation paid 7.5 billion for the acquisition of Bethesda Softworks, so profits from the last three months of 2020 would be enough to buy two such publishers.
The report is full of financial data showing how the company performs on various markets, but we are most interested in the games division. Its revenue increased by 51% compared to the last quarter of 2019. The main reason for such a big jump was, of course, the launch of the Xbox Series X and S consoles.
Xbox hardware revenue was up 86%, while games and services were up 40%, thanks mainly to the successful performance of major releases and the growing popularity of Xbox Game Pass.
The new consoles could have sold even better, but Microsoft was unable to produce enough Xbox X/S to fully meet demand. Because of this, fewer units hit the market in the first few months after launch than after the Xbox One debuted. The company warns that the problems with availability of the hardware will last at least until April this year.
All in all, Microsoft's games division is doing very well and the company is currently reporting revenue increases across the board. This is important news because in the last quarter of 2019, the Xbox division saw a 21% drop in revenue. This was mainly caused by a collapse in interest in the hardware. Gamers were tired of the old generation and the launch of the new one has clearly reawakened consumer enthusiasm.
