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Microsoft FY20 Q4 earnings: Xbox gaming revenue grew 64%. Hardware revenue: +49%. Content and Services: +65%

TameLucas

TameLucas

Member
May 30, 2019
708
Montreal
Gaming revenue increased $1.3 billion or 64%, driven by growth in Xbox content and services. Xbox content and services revenue increased $1.2 billion or 65%, primarily due to record engagement, including strength from third-party titles, as stay-at-home guidelines continued. Xbox hardware revenue increased 49%, primarily due to an increase in volume of consoles sold.
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Xbox content and services revenue increased 65% (up 68% in constant currency)
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Source: https://www.microsoft.com/en-us/investor/earnings/FY-2020-Q4/press-release-webcast



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UPDATE: Record subscriber growth for console and PC Game Pass:
 
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Deleted member 5028

User requested account closure
Banned
Oct 25, 2017
9,724
Huh. Thats a turnaround from last Q. Things must be looking up for the division internally.

ahh. Covid.


Everyone is gonna be eating well
 
Mrflood

Mrflood

Member
Oct 25, 2017
734
Very impressive for a console so late in its cycle. Haven't read the breakdown, but I assume Gamepass was a key driver.

Edit: After a readthrough, seems COVID was the main driver. People stuck at home bought systems and games to keep them entertained.
 

Deleted member 58846

User requested account closure
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Jul 28, 2019
5,086
Yeah, video games have been the big beneficiaries of this unfortunate situation.
Good on Xbox, hopefully this represents the start of a consistent upward trend for them going forward.
 
isahn

isahn

Member
Nov 15, 2017
990
Roma
unexpected, a properly advertised gamepass + free online could do wonders for them coming the next gen
 
THEVOID

THEVOID

Prophet of Regret
Member
Oct 27, 2017
22,879
I'm not surprised and I for one expected this, with Covid and people staying home. Great to see regardless.
 
bsigg

bsigg

Member
Oct 25, 2017
22,570
Mrflood said:
Very impressive for a console so late in its cycle. Haven't read the breakdown, but I assume Gamepass was a key driver.

Edit: After a readthrough, seems COVID was the main driver. People stuck at home bought systems and games to keep them entertained.
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Yea, industry wide everyone should be up this past quarter.
 
TheRulingRing

TheRulingRing

Banned
Apr 6, 2018
5,713
Wow this really is a huge jump.

I wonder what the other companies will post then? I can't imagine they'll show a jump this big though.
 
GreybeardGamer

GreybeardGamer

Banned
Jul 13, 2020
211
"Xbox content and services revenue increased 65% (up 68% in constant currency)"

Bu, bu, but GamePass!! Who's it even for? How does it make any money? Me and my friends got a whole year for $1 and a cheeto!

Phil Spencer is crazy like a fox.
 
arsene_P5

arsene_P5

Prophet of Regret
Member
Apr 17, 2020
15,438
Good growth and it's great to see Sony, Nintendo and Xbox doing great. When this happens we gamers win.
 
RdN

RdN

Member
Oct 31, 2017
1,781
Damn, those are fantastic numbers. Gaming division must be stronger than ever inside Microsoft, which is great news for all (well, most) gaming fans.
 
Mat-triX

Mat-triX

Member
Oct 27, 2017
969
I don't remember, but when did the Xbox division actually start turning a profit? I know it does now, but all of the Xbox & 360 generation it wasn't.
 
Goldenroad

Goldenroad

Attempted to circumvent ban with alt account
Banned
Nov 2, 2017
9,475
I take it their Q4 was ending June 30. Hell of thing to be up 50% in hardware and yet pull all your hardware from shelves during this increase. They're really going to go a whole fiscal quarter basically not selling any XBOX hardware? I still think XBSX is coming early October so as to make up for the complete dud that Q1 2021 is going to be for them.
 

martincrimson87

Banned
Dec 15, 2017
1,590
But Era told me MS should liquidate all their assets and give them to Sony as a sign of their inevitable defeat.

Era logic: That's a lot of prankster uncles and clueless grandma's not canceling their gamepass subscriptions.
 
Welfare

Welfare

Prophet of Truth - Youā€™re my Numberwall
Member
Oct 26, 2017
5,917
Goldenroad said:
I take it their Q4 was ending June 30. Hell of thing to be up 50% in hardware and yet pull all your hardware from shelves during this increase. They're really going to go a whole fiscal quarter basically not selling any XBOX hardware? I still think XBSX is coming early October so as to make up for the complete dud that Q1 2021 is going to be for them.
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Covid increased sell through far beyond what was projected for 2020. Normally there would've been a ton more supply for Xbox One while they stopped shipping them left over but it was all sold over the past 3 months. They also aren't going to increase production, and would instead move that demand to next gen.
 
ElephantShell

ElephantShell

10,000,000
Member
Oct 25, 2017
9,923
Yeah people are definitely not shying away from spending money on gaming during COVID, the complete opposite. Next-gen consoles are going to be impossible to find come the fall.
 
Jade1962

Jade1962

Banned
Oct 28, 2017
4,259
^^^^November huh? Very specific^^^^

Lines up with my trip to Best buy yesterday. Xbox, Switch and PlayStation sections were wiped out accessories and all. I bet Sony and MS wish they could launch this instant. Awesome they were up by so much. Would that make last years sales about $2billion?
 
pbayne

pbayne

Member
Oct 27, 2017
8,408
I know a few people who picked up a cheap xbox due to covid, like people who normally wouldn't really play games(probs boosted by the xbox being a lot cheaper here than a ps4 or switch).
 
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