Microsoft’s second quarter earnings call on Tuesday not only reported better-than-expected earnings and revenue, but also milestones for Xbox’s monthly gaming subscription service, as Xbox monthly active users and Game Pass hit new highs, according to CEO Satya Nadella.
“In gaming, we continued to pursue our ambition to give players more choice, to play great games wherever, whenever and however they want,” Nadella said.
“We saw new highs for Game Pass subscriptions, game streaming hours and monthly active devices. And monthly active users surpassed a record 120 million during the quarter.
“We continue to invest to add value to Game Pass,” Nadella added. “This quarter we partnered with Riot Games to make the company’s PC and mobile games, along with premium content, available to subscribers.
Microsoft
“And finally, we are energised by our upcoming line-up of triple-A launches including exciting new titles from ZeniMax and Xbox Game Studios, and we’ll be sharing details and gameplay at our showcase tomorrow.”
Although Microsoft’s total revenue increased by 2% year over year in that quarter ending Dec. 31, the 2% was the slowest rate of total revenue increase since 2016. The company also reported that gaming revenue generated by its Xbox division during the three month period which ended in December 2022 declined by 13% year-over-year. That being said, it seems more and more like Xbox’s shift towards a Game Pass-centric subscription-oriented approach in their gaming division will continue to reap benefits for the long run, especially as numbers for Xbox monthly active users and Game Pass continue to reach new highs.
What do you think of the fact that Xbox monthly active users and Game Pass hit new highs last quarter? Let us know what you think in the comments.
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