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In its Q1 2024 results published on Tuesday, the Xbox parent said it had generated over $3.9 billion from gaming, which is its highest-ever Q1 reported for the brand and a record for a non-holiday quarter.
Overall gaming revenue increased by 9% year-on-year, which Microsoft said was driven by growth in first-party content and Xbox Game Pass.
It’s notable that this window (July to September) includes the much-anticipated release of Bethesda’s Starfield.
Starfield was the best-selling game in the US in September and, according to Bethesda, it reached 10 million players during the month via full purchases and Game Pass.
Microsoft said revenue from Xbox content and services, which is by far the division’s biggest money generator, was up 13% year-over-year, driven by growth in Xbox Game Pass.
However, Xbox hardware revenue decreased by 7%, which Microsoft said was driven by a lower number of consoles sold, offset in part by higher prices.
In closing the game industry’s (and Microsoft’s) biggest ever deal, the Xbox maker took ownership of franchises including Call of Duty, Warcraft, Diablo, Guitar Hero, Tony Hawk’s Pro Skater, Overwatch, Crash Bandicoot and many more.