Xbox Is Absolutely Killing It For Microsoft

Xbox Is Absolutely Killing It For Microsoft
Image: Alex Walker (Kotaku Australia)

Stop me if you’ve heard this one before. A massive conglomerate just announced their quarterly results, and their headline gaming platform — in this case, Xbox — is making an absolute killing.

There’s no part of Microsoft that isn’t enjoying a bit of a purple patch right now: the company’s revenue for the third quarter of 2021 jumped by 19 per cent to $53.6 billion ($US41.7 billion) while the company made a healthy, Oz Lotto-sized $19.95 billion ($US15.5 billion) net income.

But some of the juiciest numbers came from Microsoft’s gaming division, which enjoyed a 50 per cent jump in revenue thanks to greater demand for Xbox hardware and services. The ongoing demand for the Xbox Series X and S — Microsoft didn’t break out the numbers per console — saw hardware revenue soar by a staggering 232 per cent, a figure that would probably be higher if the world’s supply of silicon wasn’t completely buggered right now.

Image: Microsoft

Engagement on Xbox platforms hit an all-time high as you’d expect, and Microsoft’s lead of communications also noted how games are evolving into “metaverse economies”, something that seems particularly apt with the growth of Fortnite, Minecraft and Roblox in recent years.

Minecraft is especially popular: Microsoft CEO Satya Nadella revealed during the earnings call that Minecraft has over 140 million monthly active users, a 30 per cent increase year-on-year.

Given the amount of interest still in Minecraft, it makes you wonder whether Microsoft pulled the plug on Minecraft Earth a fraction early. The augmented reality Minecraft was shut down after the pandemic restricted people’s movement worldwide, although other AR games like Pokemon Go found ways to stay relevant and accessible during the pandemic. The game was struggling before that point, to be fair, largely down to an overreliance on microtransactions, not enough content updates and a lack of wider awareness in the gaming market.

Elsewhere, everything is looking gravy for Microsoft. Even revenue for Bing — the search engine everyone loves to joke about —  rose by 17 per cent year on year.


  • That game pass is the killer punch for them. I like the quests for it, encourages me to try out a lot of different games in a fun way.

    Just talked a mate into getting one until he can get himself a PS5. I think he gets delivery tomorrow.

    Telstra has got a steady stream from what I can tell. And if you don’t want to be stuck with them, you can just pay out the console and only have one month of game pass as any extra cost.

  • I’ve said it in a few places, I’ll say it again – my two older boys managed to get their hands on a PS5 and a Series X respectively. The Series X gets daily use, the PS5 gets dusty.
    That will change once Sony pulls their finger out and actually releases some games but right at this moment, the Xbox is far, far ahead.

  • I just pick up a used PS4 pro off eBay for $250 and have been grabbing all of the PS4’s exclusives when they are on sale (usually between 10-30 bucks a game). Been having a blast with them, but the value for money just isn’t there in buying them new at $70-120 a pop compared to game pass now.

    I think I will do the same with the PS5 as there is no reason to own one for multiplats as I will just get them on xbox, enjoy game pass and save myself a fortune on PS5 exclusives.

  • Hmmm so has any others with a series x had the internet (wired or wifi) do the whole constantly disconnecting/reconnecting thing?

    This is really annoying and it seems has been a problem for others since launch. I spent a few hours last night googling as it had gotten really bad. Changed some things last night in the hopes of fixing this.

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