Microsoft’s Q1 2024 Financial Results: Xbox Hardware Sales Decline, Services Thrive

Microsoft recently disclosed its financial performance for Q1 2024, revealing a decline in Xbox hardware sales during the period, while services continued to grow.

Record Revenue of $3.919 Billion

This quarter brought the gaming division to an all-time high of $3.919 billion in revenue, a $309 million increase compared to the previous year. The launch of Starfield on September 1, 2023, also contributed to this record-breaking achievement.

Hardware Sales Dip, but Gaming Revenue Grows

According to The Verge’s Tom Warren, Microsoft’s hardware sales faced a 7% decline between July and September 2023 compared to the same quarter the previous year. However, despite this setback, gaming revenue continued to rise. Warren highlighted that revenue from Xbox services and exclusives saw a 13% increase compared to Q1 2023, while gaming revenue grew 9% year-over-year.

Strong Prospects with Acquisition of Activision Blizzard King

It is worth noting that these financial results do not include Activision Blizzard King, as their acquisition was officially completed just over ten days ago on October 13, 2023. This suggests that Xbox’s financial performance could witness a significant boost in the next quarter, especially with the highly anticipated launch of Call of Duty: Modern Warfare 3 scheduled for November 10, 2023.

Xbox Gaming Revenues, Q1 2024:

Microsoft achieved a record $3.919 billion in Xbox gaming revenue in the first quarter of 2024, up $309 million year-over-year (+9%).

The main drivers were native content and Xbox Game Pass. Xbox content and services grew 13% year over year. pic.twitter.com/3ZuSyY2Y36

— Derek Strickland (@DeekeTweak) October 24, 2023

Microsoft’s earnings for the first quarter of 2024 (financial):

• Windows OEM revenue up 4%• Device revenue down 22%• Gaming revenue up 9%• Xbox content and services revenue up 13%• Xbox hardware revenue down 7%

Full details can be found here https://t.co/UgC3iHgVJw pic.twitter.com/Pe4EU8z5gf

— Tom Warren (@tomwarren) October 24, 2023