Starfield has paid off for Microsoft. The company has reported a 9% year-on-year increase in revenue for its July to September quarter. The company says it is the highest-ever Q1 report and a record for a non-holiday quarter.
Microsoft says the growth has been driven by Xbox Game Pass. The company didn’t specifically mention Starfield as a driving factor for this growth but there’s definitely a link here between new Xbox Game Pass growth and Stafield’s launch. Of course, the game is on the service so it makes sense.
Starfield was the best-selling game in the US in September according to Bethesda. It reached 10 million players during the month through purchases and Xbox Game Pass. Microsoft hasn’t revealed how many players purchased the game and how many played it through Xbox Game Pass.
The launch resulted in a 13% year-on-year growth for Xbox Game Pass meaning people actually subscribed to the service to play Starfield. This is something Microsoft has been aiming for since they launched the program.
On the hardware front, sales sadly dropped by a further 7%. Fewer people are buying Xbox consoles than ever before. This is the second quarter in a row where hardware sales dipped for Xbox. Microsoft says the dip in sales is a result of the increased console prices. However, sales have been dropping even before the price hikes.
The next few quarters will be interesting for Microsoft. The company just wrapped up its $69 billion acquisition of Activision Blizzard and visited the HQ. While the future plans of the company aren’t clear yet, it will be interesting to see how the sale affects the brand’s year-on-year earnings. The company already stated that Xbox Game Pass won’t get any Activision Blizzard games until some time in 2024.
Microsoft FY 2024 Q1:
Based on quarterly Xbox sales growth of 9%, its gaming division is at around $15.8B in annual revenue right now.
Compare that to $16.3B during the same time last year.
See the below chart over time, with estimated breakouts for its two categories as well. pic.twitter.com/MOKwyyZzQM
— Dom (@DomsPlaying) October 24, 2023