Gaming titan Xbox had a really great 2020 and early start to 2021, as Microsoft reported an additional $5 billion in revenue compared to its previous 12 month period. All of this comes after incredible growth on services like Xbox Game Pass, the launch of the Xbox Series X|S, and more, showing that Xbox is certainly not faltering.
Xbox has recently found it very easy to make money. Not only does it have multiple revenue streams through PC games, but it's bringing massive titles to its Game Pass service. It's heavily rumored that Battlefield 6 will launch on Xbox Game Pass later this year, which would be a major get for the platform, but also not a huge surprise. Games like Outriders have benefited tremendously from being day one additions, so adding a major and highly anticipated AAA game would be a massive deal for Xbox.
Regardless, Xbox is performing incredibly well as is, according to Microsoft's latest earnings call (via GameSpot). As of March 31, 2021, Xbox gaming revenue is up 50% and hardware revenue jumped 232% with the launch of the new consoles. Analyst Daniel Ahmad reported that Xbox brought in an estimated $15 billion in revenue, which is up from $10.3 ending on March 31, 2020. That's a big jump, and that doesn't even factor in Xbox Game Pass adding MLB The Show and Outriders in April of this year.
With more major titles rumored for Xbox Game Pass, major exclusives like Halo Infinite launching soon, and anticipated games like Starfield coming in from the Bethesda acquisition, Xbox only has more room to grow. It's also likely that Xbox will continue to have great hardware sales as more Xbox Series X units become readily available. Of course, PlayStation 5 will offer noteworthy competition and could eat into sales somewhat. That said, Xbox Game Pass could win over a lot of undecided customers looking to get a new console if they learn that they can play highly anticipated games on day one for significantly cheaper on Xbox.
Xbox Game Pass recently hit 23 million subscribers, meaning it is doing a great job of getting fans engaged with Xbox services and introducing them to both major games and smaller indie titles that would otherwise go unseen. As the service continues to expand, it remains clear that Xbox has a vision, despite the fact that the company may appear to be just throwing money at games and studios at first glance. It's a pretty impressive turnaround from the start of the last generation, when Xbox made all the wrong moves.
Source: GameSpot, Daniel Ahmad