Microsoft has published its Q1 2023 earnings reports, and the gaming behemoth is doing well.
A gaming industry analyst named @DomsPlaying broke down Microsoft’s earnings in a series of tweets, and it appears that its gaming revenue is doing “slightly better.” Dom estimates that this makes this the best first quarter for Microsoft in recent memory, with revenue from Xbox sales alone reaching about $3.63 billion this quarter. Additionally, according to the reports, Xbox hardware sales revenue has increased by 13%.
The revenue from Xbox’s content and services has slowed down for Microsoft despite the rise in hardware sales. According to Satya Nadella, the CEO of Microsoft, there is strong performance for gaming outside of consoles, with usage growing across Microsoft-managed platforms and in the cloud.
With Game Pass and the Xbox Series S, which it sees as an entry point into the Xbox ecosystem, Microsoft claims to offer the best value in gaming during the holiday season.
Overall, it appears that Microsoft is still doing well despite the fact that Sony’s enormous PS5 exclusives dwarf Xbox exclusives. These massive exclusives have forced Microsoft to seek solutions, even turning to Chinese developers to find its own Xbox exclusive game that will bring in as much revenue as Genshin Impact did for Sony, if not more.