Microsoft held an investor meeting earlier today that details its Fiscal Year 2021 Q2 (Oct. 1 to Dec. 31, 2020) earnings, which included a lot of big numbers for its gaming division and the Xbox brand.
Along with an overall revenue increase of 17 percent to $43.1 billion, gaming revenue alone grew more than 50 percent to $5 billion in 2020 with the success of Xbox Game Pass and other ventures.
According to the detailed press release from Microsoft, Xbox Content and Services increased 40 percent year-over-year, which was driven by a mix of first and third-party games, along with Game Pass subscriptions. Hardware was also up 86 percent from 2019 thanks to the launch of the Xbox Series X and S in November.
Industry analyst Daniel Ahmad pointed out that, in total, the Q2 revenue for Xbox’s Content and Services was higher than the total of Xbox Gaming’s revenue in the same quarter last year. The hardware side of Xbox also nearly doubled in that same timeframe, accounting for 31 percent of Xbox’s total revenue.
In the conference call, Microsoft CEO Satya Nadella mentioned that Xbox Game Pass now has 18 million subscribers. This lines up with an earlier report that 70 percent of Xbox Series X and S consoles were attached to Game Pass accounts, as of Nov. 13.
Additionally, the conference call listed $2 billion of the $5 billion total revenue for Xbox Gaming in Q2 came from third-party content, there are 100 million active monthly users for Xbox Live across PC, Mobile, and console, and the Series X and S were the most successful launch for an Xbox console.
You can read a full breakdown of the Microsoft Q2 press release and find more details on the official Microsoft website.