Xbox Pulls Off Record Revenue Owing to These Strategies
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Microsoft has learned a lot from its mistakes in 2013. Since the release of Xbox One, Microsoft’s methods have changed, and it seems like the community has acknowledged it. Xbox recently revealed its earnings from the first quarter of the 2021 fiscal year, and the results are certainly astounding.
Xbox Q1 2021 earnings highlights
– Overall Gaming Revenue is up 22% year over year
– Content and Services revenue is up 30% year over year
– Microsoft notes that Game Pass subscriptions, 1st party software, and third party game sales led the way for growth metrics pic.twitter.com/SjGKeBIeda— Benji-Sales (@BenjiSales) October 27, 2020
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Xbox Game Pass subscriptions pave the way for the company’s success
Xbox has increased its overall gaming revenue by 22% and its ‘content and services’ revenue by 30%. These numbers depict the company’s sturdy growth over the years. Despite lacking the best exclusive titles in the market, it has still attracted the gaming community around the world.
“Happy for Years”- Phil Spencer Announces Great News for Xbox One Users
Microsoft clarifies that it owes its growth to three factors:
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- Game Pass subscriptions
- First party Software
- Third-party game sales
Microsoft is now emphasizing on making games more accessible with its subscription services, and the Xbox Game Pass is one of them. Back in September, Microsoft announced that the Xbox Game Pass had already surpassed 15 million users. Naturally, this staggering number of users has boosted Microsoft’s revenue.
Currently, the Xbox Game Pass costs $9.99/ month, which implies that the company is generating $150 million in a month. This revenue exceeds $1 billion annually. Therefore, it seems that the Game Pass subscriptions have primarily helped in boosting the company’s revenue.
Microsoft’s approach towards gaming is fruitful in the long run
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Sony has an unmatched list of exclusive titles for its consoles. As a result, a lot of fans buy it to play games like The Last of Us, Ghost of Tsushima, and God of War, etc. However, Xbox’s head Phil Spencer is not a big fan of this marketing approach. He feels that such an approach hinders the development of the gaming community and leads to “weaponizing of exclusives.”
However, this doesn’t mean that the fans will be deprived of some brilliant exclusive titles. Microsoft has started the process of acquiring Bethesda, and the deal will be official by early 2021. As a result, all of Bethesda’s games will be available on the Game Pass soon.
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To sum up, Microsoft’s strategies to enhance user experience are finally getting recognition by gamers across the globe. Xbox is a much bigger brand as it heads to the console war this time.
It will be interesting to see the battle between Sony’s exclusives and Microsoft’s subscription services this year. However, the biggest beneficiary here will be the fans who will have the option to avail of these benefits.
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