Microsoft is reporting a 44 per cent increase in gaming revenue for Q1 2019.

Third-party titles drove growth in a quarter that lacked in first-party releases until Forza Horizon 4’s launch at the start of this month. Xbox software and services revenue grew 36 per cent year-over-year.

Hardware was the biggest boom for Microsoft’s gaming segment - in the last year, the Xbox One X launched, helping push hardware revenue up 94 per cent. Xbox Live, the console’s online service, is now up to 57 million monthly active users.

The computing giant reported overall Q1 2019 revenues of $29.1 billion, up 19 per cent year over year. At 44 per cent, gaming stands out as one of the fastest-growing pieces of Microsoft's business.

Of course, much of Microsoft’s gaming efforts are still laser-focused on its console ecosystem. But CEO Satya Nadella recently announced plans to extend the Game Pass subscription service to PC, suggesting a continued effort on Microsoft’s part to reconnect with desktop gaming.