Xbox FY22 Q2 games revenue up 8% thanks to first-party games, Xbox Game Pass

Source: Matt Brown | Windows Central

Microsoft shared its FY22 second-quarter earnings report on Tuesday, detailing the growth of the Xbox brand. Overall, games revenue was up 8% year over year, while content and services revenue was up 10% and hardware was up 4%. This growth was driven by first-party Xbox titles, Xbox Game Pass, and demand for Xbox Series X and Xbox Series S consoles, although partially offset by lower third-party revenue.

This drop in third-party revenue can be partly attributed to the underperformance of major third-party titles, such as Activision’s Call of Duty: Vanguard and EA’s Battlefield 2042. The success of first-party Xbox games can be noted in Halo Infinite and Forza Horizon 5, which were listed at #2 and #16, respectively, in the December 2021 NPD report.

Microsoft recently shared that Xbox Game Pass has reached over 25 million subscribers. All of this growth is directly compared to Microsoft’s FY21 earnings in the second quarter a year ago. This is in line with continued growth seen in the previous quarter ahead of the 2021 holiday season, according to Microsoft’s fiscal 22 first-quarter results.

Looking ahead, Microsoft continues to invest heavily in new content for Xbox, including expanding its line of first-party products. Microsoft acquires Activision Blizzard for $68.7 billion, adding teams like Infinity Ward and Blizzard Entertainment to the Xbox proprietary group, while also acquiring major gaming IPs such as Call of Duty and World of Warcraft. This is in addition to Microsoft’s earlier acquisition of ZeniMax Media, parent company of Bethesda Softworks, for $7.5 billion.

We may earn a commission for purchases using our links. Learn more.

Joseph K. Bennett