Microsoft said its videogaming revenue rose 11% in the June quarter, bolstered by strong hardware sales, growth in Game Pass subscription sales and consumer spending on its first-party games.
Xbox hardware revenue rose 172% in the June quarter from the year-earlier period.
The company’s newest two Xbox gaming consoles “are our fastest-selling consoles ever,” Chief Financial Officer Amy Hood said on the company’s earnings call.
The growth stands out because the Xbox Series X and S consoles have been in short supply. That suggests there’s more upside to come as long as Microsoft can eventually restock shelves.
Xbox content and services revenue fell 4% due to declines in consumer spending on third-party games, which Microsoft blamed on a tough comparison from a year earlier.