Microsoft’s gaming division had a record-breaking Q4 2021, with an 11% increase in revenue year-over-year, driven by strong sales of Xbox hardware and accessories along with continued growth in gaming services. The division brought in $3.53 billion during the quarter. Minecraft and Halo also contributed to the division’s success with a 20% increase in revenue for Minecraft and the announcement of new games in the Halo franchise. Microsoft plans to invest in gaming services and expand cloud gaming availability through Xbox Game Pass Ultimate, and the recent acquisition of gaming studio Bethesda is expected to drive long-term growth for the division.
Microsoft Announces Record-Breaking Quarter for Gaming Division
Redmond, Washington – Microsoft reported their fiscal Q4 2021 earnings on Tuesday, revealing that their gaming division had a record-breaking quarter. The division responsible for Xbox consoles, gaming services, and games such as Minecraft and Halo, saw a 11% rise in revenue year-over-year, reaching $3.53 billion in Q4 2021.
Xbox Hardware and Accessories Sales Drive Growth
Xbox hardware and accessories sales were the primary driver of growth for the gaming division, with a 172% increase in revenue year-over-year. This growth can be attributed to the successful launch of the Xbox Series X|S consoles in late 2020, along with a strong demand for gaming accessories.
Gaming Services Continue to Grow
Microsoft’s gaming services, including Xbox Game Pass, saw a 22% increase in revenue year-over-year. Xbox Game Pass currently boasts over 18 million subscribers, a 40% increase from the previous year. The company announced plans to invest more in gaming services, including expanding the availability of cloud gaming through Xbox Game Pass Ultimate.
Minecraft and Halo Drive Software Sales
Minecraft, one of the highest-grossing video games of all time, continues to be a significant contributor to Microsoft’s gaming division. The game saw a 20% increase in revenue year-over-year, thanks to its popularity on multiple platforms and ongoing updates. Halo, a flagship franchise for Xbox, is also driving software sales with the announcement of new games in the series coming later this year.
Outlook for Gaming Division is Positive
Microsoft’s gaming division is in a strong position for the future, with plans to continue investing in gaming services and expanding the availability of cloud gaming. The company recently announced the acquisition of gaming studio Bethesda, adding popular franchises such as The Elder Scrolls, Fallout, and Doom to its portfolio. The addition of these franchises is expected to drive long-term growth for the gaming division.
“Gaming is the most expansive category in the entertainment industry, as people everywhere turn to gaming to connect, socialize and play with their friends,” said Satya Nadella, CEO of Microsoft. “We are investing aggressively and innovating rapidly to capture this expansive opportunity.”
Conclusion
Microsoft’s gaming division had a record-breaking quarter, with a 11% increase in revenue year-over-year. Xbox hardware and accessories sales, gaming services and popular games such as Minecraft and Halo were major contributors to the division’s growth. Microsoft’s outlook for the gaming division is positive, with plans to continue investing in gaming services and expanding the availability of cloud gaming.