Microsoft’s Xbox revenues increased 4% year over year due to the high demand for its consoles recently. Microsoft has announced financial results for the three months ending December 31, 2021, showing the company’s gaming business has grown but at a slower pace than the rest.
Overall, Microsoft’s revenues were up 20% to $51.7 billion, and net income was up 21% to $18.8 billion. Windows OEM revenues rose 15% to $17.5 billion, driven by search and news advertising growth.
Xbox content and services revenues were up 10% year-over-year, while Microsoft’s gaming revenues were up 8%, improving from 2% growth and 4% declines, respectively, in the previous two quarters. Microsoft attributed the increase in Xbox content revenue to a change in first-party sales and Game Pass subscriptions (Halo: Infinite was added to Game Pass this quarter).
The company’s earnings report made no mention of Microsoft’s $68.7 billion acquisition of Activision Blizzard, a deal not expected to be completed until the next fiscal year.