So much for that whole “Xbox is doomed” narrative, am I right, guys?
Microsoft is truly here to stay in the gaming industry, because they are making a killing with their products and services. In their financial report that they released earlier today, they announced that annual gaming revenue for them crossed $10 billion, reaching $10.3 billion, a 14% increase year-on-year from the $9.05 billion they reported the year before.
Xbox software and services revenue increased 36% in this period, mainly on the back of strength from third party games. Microsoft also reported that Xbox Live subscribers have now crossed 57 million across Xbox, Windows 10, and mobile devices, which, again, represents a significant vindication for their services driven strategy over focusing on discrete hardware unit sales.
In all, given how well Microsoft is doing, it makes sense that Phil Spencer was given the cash to go shopping for new studios, and expand the scope of Microsoft’s first party roster of studios. Hopefully, this bodes well for Xbox in the future, and we can see Microsoft take gaming more seriously than it looked like they did for a while earlier this generation.