Xbox Revenue Up 11% In FY21 Q4 Results, Driven By Series X|S Sales (2025)

Hardware revenue increased by 172%

  • Xbox Revenue Up 11% In FY21 Q4 Results, Driven By Series X|S Sales (1)
  • by Fraser Gilbert

Microsoft reported the latest earnings results today for the quarter ended June 30, 2021, and as expected, the Xbox division has benefited from an increase in revenue compared to last year, driven by Xbox Series X|S sales.

The increase is $357 million or 11%, with Xbox hardware revenue getting a whopping 172% boost "driven by higher price and volume of consoles sold due to the Xbox Series X|S launches".

However, Xbox content and services revenue did actually decrease by $128 million or 4% compared to the same period in 2020, "driven by a decline in third-party titles on a strong prior year comparable that benefitted from stay-at-home scenarios, offset in part by growth in Xbox Game Pass subscriptions and first-party titles."

It's mostly good news, then, albeit with a small bump in the road in regards to content and services. With the Xbox Series X and S still being tough to get ahold of right now, that hardware revenue figure could have been much bigger!

What are your thoughts on these latest earnings results for the Xbox division? Let us know below.

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About Fraser Gilbert

Xbox Revenue Up 11% In FY21 Q4 Results, Driven By Series X|S Sales (3)

Fraser is the News Editor at Pure Xbox, where he spends his time reporting on the biggest stories in the world of Xbox and beyond.

Comments 11

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  • swedetrap

I still have friends waiting to buy Series X consoles. Shame the component problem is still here all these months later.

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  • mousieone

@uptownsoul because you know content and services is just Gamepass and couldn’t possibly because there were less big games released.

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  • IronMan30

It still throws me off that MS doesn't disclose exact figures for console sales but I guess it's not the majority of the company's revenue or profits so it's not a huge deal. Not that it matters much to me since I'm not a shareholder.

In any case, I'll get a Series X, for sure. It's only a matter of when, not if.

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  • NEStalgia

They listed growth in game pass and subs offsetting content decline. That's pretty interesting relative to the "game pass isn't sustainable" claims when subs are actually offsetting losses in traditional content sales ...

Also, what's Shawn Layden on about....

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  • NEStalgia

@SplooshDmg Yeah, I'm sure all the publishers are down from 2020s weird high. GP actually offsetting that is pretty astounding. Though, I always assume Enron accounting is in play with these things.

I really have no idea what Laydens angle is. I've always liked him, and surely miss his playstation vs Ryan's Colombia-TriStar Interactive Home Entertainment motif but..... He's not only contradicting the industry, he's contradicting himself. In the same interview. No market growth? Anti consolidation, pro small game, but pro rising prices.... On account of the market being a static size? He's kind of way off in the corner mumbling about the grays and chupracabras taking away the games. Which is a shame because he had way better an idea what's going on than Ryan, before. Though he did start the whole decent into movie games thing. And now he's complaining about it and saying his favorite game is Parappa. The PlayStation he sold isn't the PlayStation he likes apparently Maybe he should have promoted Gravity Rush 2 instead of covering Days Gone thrice in a single E3 with GR2 a brief mention with no real trailer.

The worst thing Jim Ryan may have done was break Shawn Layden until he's just an outraged internet redditor.

Secretly I think he and Yoshida just play Sea of Thieves on game pass with Phil.

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  • MinervaX

Not surprised third party sales are weak, been a rather slow year. Only game I bought this year that was not simply bought because it was on sale was Mass Effect Legendary Edition.

Have my eyes on Sony of Iron and Death’s Door, will get the later as soon as I’m done with Skyward Sword.

Things should pick up soon, though. Battlefield, the next CoD game, FarCry, there quite a bit of big ticket third party games coming through the rest of the year.

On the plus side, been able to do a tad of a dent on the backlog.

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  • NEStalgia

@The_New_Butler Considering the money they spent on studio acquisitions, hardware subsidy, and whatever costs are going into Game Pass, showing revenue - opex would be plain insanity. Of course the division is running a defect. Even under ideal sales the long term infrastructure spend would eclipse it, easily. In that light, showing revenues makes perfect sense, because in the X1 era....revenues weren't great. And the revenues are still up compared to last year on average, which was already a great year in the industry. Their spend is off the charts, but nobody complained about Amazon profits when they stopped to build entire fulfuillment campuses in every single state.

I'd be surprised of PlayStation weren't also running a defecit. Some acquisitions, hardware losses that I believe have been projected to run deeper than Series X (Cernydrive doesn't come cheap), big spend on delayed megabudget 1st party games. I think Nintendo's the only one sweeping money under the rug. "Oh, we took the same console and changed the screen vendor. Please buy last year's game for it." (holds hand out for payment. Is filled with stack of freshly minted bills.)

@SplooshDmg I think he and Reggie should fan translate Mother 3 in their spare time. Both are washed up industry execs desperately grasping for relevance like the old days! If Reggie can do "My life: From the Bronx to ceremonial figurehead of a Japanese company's regional sales office", surely Shawn can do "Sony Style: How I went from Jim Ryan to Jim Beam"

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  • MaseSco

I'll grab a Series X at some point, but I'm happy with the Series S in the meantime as it's not like we're unindated with XS games 😂😂

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  • MaseSco

@The_New_Butler it does and it doesn't. I understand what the person meant and yes, the 7.5b won't show as a whole number but essentially paid off in instalments each quarter under the company's depreciation account. The assets (IP) won't depreciate. I don't think I've explained this very well 🙄😂

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  • MaseSco

@SplooshDmg haha no problem, didn't realise I'd run into accounting speak on gaming website 😂😂😂😂 Breaking down the MS Financials still counts as work right? 🤔
Also, you explained what I was saying alot better.

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  • MaseSco

@SplooshDmg it's also more interesting than these invoices I'm needing to create... XD

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