Microsoft made a massive $1 billion from games subscription revenue during the last quarter.

That's according to remarks made by company's CEO Satya Nadella, in which he told shareholders that Xbox's subscription business had made nearly $1 billion.

Overall, Microsoft's financials for the quarter ending March 31st show that the Xbox content and services business – aka software and subscriptions – saw a three per cent hike year-on-year. Overall, however, the company's games division saw a four per cent decline year-on-year, which represents a $133 million dip. 

That's due to games hardware revenue tanking by 30 per cent year-on-year, something that Microsoft says is the result of the previous year 'benefitting from increased console supply'.

"Our revenue from subscriptions reached nearly $1 billion this quarter," CEO Satya Nadella told shareholders.

"This quarter, we also brought PC Game Pass to 40 new countries, nearly doubling the number of markets we are available. Great content remains the flywheel behind our growth. We have now surpassed 500 million lifetime unique users across our first-party titles."