Microsoft sees record growth with $3.61 billion in Xbox-related revenue for Q1 2023

Microsoft has released its Q1 2023 earnings reports and things are looking good for the gaming giant.

In a series of tweets by @DomsPlaying, a gaming industry analyst, Dom broke down Microsoft’s earnings and it seems that its gaming revenue is doing “slightly better.” According to Dom, this means that the revenue has reached around $3.63 billion this quarter just from Xbox sales, marking this as the best Q1 Microsoft has had in recent years. The reports also indicate that Xbox hardware revenue has increased by 13 percent.

But despite the rise in hardware sales, Xbox’s content and services revenue has slowed down for Microsoft. VGC reported that according to Satya Nadella, the CEO of Microsoft, there is a strong performance for gaming off console, seeing usage growth across platforms managed by Microsoft as well as cloud gaming.

Microsoft is also likely looking forward to the holiday season, saying that it offers the best value in gaming with Game Pass as well as the Xbox Series S, which it sees as an entry point to the Xbox ecosystem.

All in all, it seems that Microsoft is still doing well even though Xbox’s exclusives are being eclipsed by the gigantic exclusives of Sony on the PS5. These gigantic exclusives have put pressure on Microsoft to look for answers, even turning toward Chinese developers to look for its own Xbox exclusive game that will make it as much or maybe even more than the money that Genshin Impact made for Sony.