Microsoft gaming revenues up 8% in Q2
Brendan Sinclair
Managing Editor
Tuesday 25th January 2022
Xbox Series X|S brought in more money for Microsoft last quarter than in the systems' 2020 holiday launch window, with the company posting Xbox hardware revenues up 4% year-over-year on demand for its latest consoles.
Microsoft today reported financial results for its second fiscal quarter (three months ended December 31, 2021), showing the company's gaming business grew, but at a slower pace than the rest of the company.
Overall, Microsoft reported revenues up 20% to $51.7 billion with net income up 21% to $18.8 billion.
The More Personal Computing division -- which includes Windows OEM revenues, search and news advertising, and the Surface line of products as well as Xbox -- saw revenues up 15% to $17.5 billion, with growth driven primarily by Windows and search and news advertising.
Microsoft's gaming revenues were up a more modest 8%, with Xbox content and services revenue up 10% year-over-year, an improvement from the 2% growth and 4% declines posted in the prior two quarters, respectively.
Microsoft attributed the bump in Xbox content revenue to growth in first-party sales and Game Pass subscriptions -- Halo: Infinite launched into Game Pass during the quarter -- partially offset by a dip on the third-party front.
The company's earnings report made no mention of last week's agreement to acquire Activision Blizzard for $68.7 billion, a deal which is not expected to close until Microsoft's next fiscal year.
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