Microsoft has revealed its Q3 financial results, reporting one of its best third quarters to date with a 3% YoY increase in the Xbox content and services segment. This growth was attributed to the popularity of the Xbox Game Pass subscription service, with Microsoft CEO Satya Nadella stating that the company had set third quarter records for monthly active users and devices. Revenue from subscriptions reached almost $1bn in Q3. Microsoft has also expanded the reach of its PC Game Pass, which is now available in 40 new countries, doubling the number of markets where it is available. The company has more than 500 million lifetime unique users across its first-party titles.
Decline in Xbox hardware revenue and overall gaming revenue
However, Xbox hardware revenue was down 30% YoY, following a significant boost in the previous year from increased console supply. Overall gaming revenue declined by 4% YoY to $3.59bn. Microsoft anticipates a reversal of this trend in its next quarter report, with the upcoming launches of Minecraft Legends and Redfall. The proposed acquisition of Activision Blizzard may also impact future financial reports, pending approval from global anti-competitive organisations.