As we come into the close of another fiscal quarter and companies are now reporting their latest quarterly earnings, Microsoft is a major part of that cycle. As one of the largest in the world with products in business, networking, and gaming, Microsoft is well worth watching among technology investment enthusiasts. With that in mind, the company reported its Q4 2021 earnings, closing out its previous fiscal year. As one of the report’s major highlights, Xbox Series X/S sales figured very heavily into a major increase in gaming revenue for the company.
Microsoft reported its Q4 2021 Earnings Report on the Microsoft Investor Relations website on July 27, 2021. For the most part, Microsoft reported a strong previous quarter and end to its fiscal year, but a major contributing factor to that was gaming revenue. Microsoft increased its gaming revenue by $357 million USD, or 11 percent, over its previous earnings report. The major contributor? The Xbox Series X/S consoles, which aided in a 172 percent increase in hardware revenue.
This massive shift in hardware revenue for Microsoft was able to heavily cover a four percent revenue decrease in content and services. That decrease was attributed to a slightly weaker than average period of third-party titles going up against a very strong year. This could teeter in the other direction very soon - or at least balance out - as Xbox prepares to get the most out of investments such as the recently acquired Bethesda and titles like Double Fine Productions’ much-anticipated Psychonauts 2.
Microsoft produced a strong Q4 2021 to round out its previous fiscal year. With the Xbox Series X and S out the door and major studios under its umbrella, it seems unlikely that gaming revenue will slow down for the company anytime soon. Be sure to tune in for more quarterly financial reporting as it becomes available here at Shacknews.