Xbox revenue crawls up 1% year-on-year

Xbox revenue crawls up 1% year-on-year

Tech giant Microsoft has reported that its Xbox division saw a one per cent revenue increase year-on-year.

That's according to the company's financials for the three months ending June 30th, 2023, in which it reported that its games business had grown by less than expected. CEO Satya Nadella (pictured) told investors that this was due to "weakness in first-party and third-party content performance." It still saw a $36 million increase year-on-year.

The small increase year-on-year is due to Xbox's hardware business seeing a 13 per cent decline as console sales slow down. This was offset by a five per cent rise in the company's content and services – i.e. games and subscriptions – revenue.

Speaking of subscriptions, Nadella says that it saw record engagement for a Q4 on its Game Pass service. The exec said that the number of hours people spent on the platform rose by 22 per cent year-on-year. There's no updated figure on how many actual subscribers that Game Pass has attracted, pointing to this figure still being in the region of the 25 million users the service boasted in January 2022

PCGamesInsider Contributing Editor

Alex Calvin is a freelance journalist who writes about the business of games. He started out at UK trade paper MCV in 2013 and left as deputy editor over three years later. In June 2017, he joined Steel Media as the editor for new site In October 2019 he left this full-time position at the company but still contributes to the site on a daily basis. He has also written for, VGC, Games London, The Observer/Guardian and Esquire UK.