1B in Gamepass Revenue by xbox

Microsoft

has announced its Q3 fiscal 2023 financial results, revealing $52.9 billion in revenue and $18.3 billion in net income. The company has experienced a 7% increase in revenue and a 9% increase in net income, primarily driven by its cloud, office, and server businesses. However, the devices revenue, which includes Xbox, has declined this quarter. Xbox hardware revenue dropped by 30%, but this was offset by a slight 3% increase in Xbox content and services revenue thanks to Xbox Game Pass growth. The decline in hardware revenue is not surprising, given the lack of first-party games to drive sales. 

Despite the dip in hardware revenue, Microsoft CEO Satya Nadella reports that the company set Q3 records for monthly active users and devices in Xbox, with nearly $1 billion in revenue from subscriptions. Microsoft expects mid to high single-digit growth in gaming revenue and low to mid-teens growth in Xbox content and services revenue in the next fiscal quarter.

Microsoft is also pushing to expand its Game Pass service to mobile devices and has launched PC Game Pass in 40 new markets, bringing the total number of countries with access to Game Pass to 86. The company's proposed $68.7 billion acquisition of Activision Blizzard is a significant part of its mobile gaming strategy. UK regulators are due to issue their final decision on the acquisition tomorrow, while the EU will deliver its verdict next month, and the FTC has sued to block the acquisition.

In summary, Microsoft's Q3 fiscal 2023 financial results show:
- $52.9 billion in revenue and $18.3 billion in net income
- 7% increase in revenue and 9% increase in net income
- Xbox hardware revenue dropped by 30%, but Xbox content and services revenue increased by 3% due to Xbox Game Pass growth
- Microsoft set Q3 records for monthly active users and devices in Xbox
- Nearly $1 billion in revenue from subscriptions
- Expecting mid to high single-digit growth in gaming revenue and low to mid-teens growth in Xbox content and services revenue in the next fiscal quarter
- Microsoft is expanding its Game Pass service to mobile devices and has launched PC Game Pass in 40 new markets
- The company's proposed $68.7 billion acquisition of Activision Blizzard is pending regulatory approval from UK, EU, and FTC.