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Xbox Content & Services Revenue Grows 30% Year-On-Year Thanks to Game Pass & Games

Microsoft announced its results for the first quarter of the fiscal year 2021, related to the period between July 1 and September 30.

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Obscure_Observer37d ago ShowReplies(10)
darthv7237d ago

Hardware sales for current gen declined but software and services increased. Will be interesting to see how much of an impact the new consoles will have on the next quarter.

Pricey37d ago (Edited 37d ago )

How much did that revenue cost, I.e what's the net profit/loss. And how much of it was to do with COVID-19

gamer780437d ago

covid probably did increase it some, but in general it increased video game revenue across the board including microtransactions which sony has said is the bulk of their revenue. Like most cloud services that are subscription based there is ALWAYS a loss up front, but is typically factored into the long term plan that after about 2 years they begin to see profit, roughly depending on the industry. That also tracks with how my company did as well.

Atom66637d ago

Profits for the division are reported (pretty good too).

Margins are nonexistent on HW, so we can equate most overall profits to software and services. Despite a decline this year from things like Fortnite, plenty of other 3rd party services have boomed w/covid related issues.

They've also had a good run on 1st party this year (PC most of all).

Not sure how they could ever really breakdown P&Ls for Gamepass in a discernible way though. Too many variables. If a game like Flight Sim cost 20 million to make, what's it's profit on GP? Some bought it outright, some subbed to GP because of it, some played it b/c they were already subbed.

Then you have to think about how to calculate these things for all of Game Pass, where it's a combo of 3rd party timed contracts & 1st party.

Basically, no matter what numbers we get, unless we have unprecedented access to piles of data, we'll never have a complete picture.

BillyBrain37d ago

Revenue, not profit. I want to know how much MS is losing on GamePass.

glennhkboy37d ago

Since MS mentioned gaming individually, this mean that MS is at lease satisfy with the gaming division's performance. Remember at the beginning of XBoxOne's life cycle, the return is so bad that MS never mention gaming by name.

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