Microsoft hosted its quarterly financial conference call for investors and analysts and chief executive officer Satya Nadella and chief financial officer Amy Hood talked about the Xbox business.
Nadella boasted leadership for Xbox Series X and S among next-gen consoles in several markets in the past quarter (January to March), on top of significant growth of time played on game pass and Azure applications for gaming.
Hood mentioned that Xbox hardware revenue was above expectations in the past quarter, while contents and services revenue was below expectations.
She also added that COVID-driven production shutdowns in China have affected negatively Xbox Series X|S supply in Q4 (from April to June). Microsoft expects gaming revenue to decline in the mid-to-high single digits driven by lower engagement hours year-on-year and constrained console supply.
Xbox content and services revenue is also expected to decline in the mid-single digits, while engagement hours are still expected to remain higher than pre-pandemic levels.
Hood also added that if the production shutdowns in China continue into May, their effect may extend further.
If you’re interested in Microsoft’s financial performance (especially in regards to the Xbox business) you can check out our dedicated article from earlier today.
