Microsoft’s Q1 2024 Financial Results: Xbox Hardware Sales Decline, Services Thrive
Microsoft recently released its financial performance for the first quarter of 2024. While Xbox hardware sales saw a decline during this period, the company’s services continued to grow.
Record Revenue of $3.919 Billion
The gaming division achieved a record-breaking revenue of $3.919 billion this quarter, marking a $309 million increase compared to the previous year. This outstanding achievement was largely influenced by the launch of Starfield on September 1, 2023.
Hardware Sales Dip, but Gaming Revenue Grows
Although Microsoft experienced a 7% decline in hardware sales for Xbox between July and September 2023 compared to the same quarter in the previous year, the overall gaming revenue continued to rise. Xbox services and exclusive offerings saw a 13% increase compared to Q1 2023, while gaming revenue grew by 9% year-over-year.
Strong Prospects with Acquisition of Activision Blizzard King
It is important to note that these financial results do not include the impact of Microsoft’s recent acquisition of Activision Blizzard King, which was completed on October 13, 2023. This acquisition is expected to significantly boost Xbox’s financial performance in the next quarter, especially with the highly anticipated launch of Call of Duty: Modern Warfare 3 scheduled for November 10, 2023.
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Microsoft’s Q1 2024 (fiscal) earnings:
• Windows OEM revenue up 4%
•Devices revenue down 22%
•Gaming revenue up 9%
•Xbox content + services rev up 13%
•Xbox hardware rev down 7%
full details to come here
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— Tom Warren (@tomwarren) October 24, 2023