Microsoft reports $357 million increase in Xbox revenue in Q4 2021

The company says the Series X and S helped push gaming hardware sales up by 172 percent

Xbox Series X/S

Xbox revenue increased by $357 million USD (about $450 million CAD) in Microsoft’s Q4 2021, the tech giant has reported.

This marks an 11 percent growth from the previous quarter. Additionally, Microsoft says Xbox hardware sales jumped by 172 percent due to demand for the Xbox Series X and S.

The company adds that there was “growth” in Xbox Game Pass subscriptions and first-party games, although further context wasn’t provided. As of April, Game Pass had reportedly hit 23 million subscribers. Over the past few months, Xbox has invested even more heavily in Game Pass by bringing dozens of titles to the platform day one, as well as expanding its Cloud Gaming streaming feature to iOS and browsers.

In particular, the next several months will see the release of several notable games on Game Pass on day one, including Microsoft Flight Simulator (launched on console today, July 27th), Hades (August 13th), Psychonauts 2 (August 25th), Back 4 Blood (October 12th), Forza Horizon 5 (November 9th) and Halo Infinite (TBA holiday 2021).

However, Microsoft notes that “content and services” revenue dropped by four percent in Q4 due to a decline in third-party titles. The company attributes this to a “strong prior year comparable that benefitted from stay-at-home scenarios.”

That said, it’s also been a comparatively quieter year for big game releases, with titles like Hogwarts Legacy and Gotham Knights being delayed until 2022 in part due to the pandemic. Other games have likely had their targeted launch windows pushed back internally for similar reasons as well.

Throughout its entire business, Microsoft is reporting revenue of $46.2 billion USD (about $58.2 billion CAD), an increase of 21 percent. Specifically, the company’s ‘Revenue in Productivity and Business Processes’ division (which includes Office and LinkedIn) grew 25 percent to $14.7 billion USD (about $18.5 billion CAD), ‘Cloud’ revenue shot up by 30 percent to $17.4 billion USD (about $22 billion CAD) and ‘More Personal Computing’ (includes Xbox, Surface and Windows) rose nine percent to $14.1 billion USD (about $17.7 billion CAD).

Source: Microsoft

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