Xbox hardware sales increase substantially, steady Game Pass growth, says Microsoft Q1 2022 earnings report

Microsoft's gaming revenue increased 16 percent.

The Xbox seems to have continued its upwards trajectory since the launch of the new-generation Xbox Series X/S, recording a significant increase in sales.

Microsoft released their Q1 2022 earnings report yesterday. Overall Microsoft gaming revenue increased by 16 percent. According to the report, Xbox hardware revenue grew 166 percent this quarter thanks to the “continued demand” for the Xbox Series X and S consoles.

The demand for Xbox’s game library subscription service Xbox Game Pass also remained strong. Microsoft recorded a two percent revenue increase in Xbox content and services “with the growth in Xbox Game Pass subscriptions and first-party titles offset by declines from third-part titles”.

Satya Nadella, Microsoft’s CEO, spoke on an earnings call, stating that monetization and engagement for Xbox set records during this period. The release of key titles like Halo Infinite and Forza Horizon 5 and Xbox Cloud Gaming should help to bolster this growth.

Xbox Game Pass grew exponentially with the release of the Xbox Series X and S, giving users easy access to a library of previous Xbox titles. Over the past 12 months, Microsoft has been busy acquiring studios for Xbox, including Bethesda and Arkane Studios. With these acquisitions, we’ve seen more popular games make their way to the Game Pass service, and it doesn’t seem like it will be slowing down anytime soon.

We’ll likely see more substantial growth to Game Pass in the near future when two highly anticipated sequels, Halo Infinite and Forza Horizon 5, make their way onto the service on the same day as their official releases.