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Xbox Q3 revenue holds steady against pandemic headwind

Xbox One X Logo
Xbox One X Logo (Image credit: Windows Central)

What you need to know

  • Microsoft has reported its FY20 Q3 earnings, including a 1 percent decline in gaming revenue, staying strong amid the current pandemic.
  • Xbox content and services revenue increased 2 percent year-over-year, with an uptick in engagement attributed to "stay-at-home guidelines."

Microsoft has posted its third-quarter earnings for its 2020 fiscal year, reporting increased company-wide revenue to $35 billion, and continued growth across Redmond's lineup of products and services. For Microsoft's gaming efforts dominated by Xbox, revenue stays near-flat despite the ongoing global pandemic, reporting relatively consistent performance across its gaming division.

Gaming revenue clocks in with a 1% decline year-over-year, as preparations remain underway for the upcoming generation of Xbox consoles, spearheaded by Xbox Series X. While current world events foster uncertainty across the globe, the Xbox division — and Microsoft as a whole — remains well-positioned throughout Q3.

Xbox content and services increased 2%, coupled with an uptick in engagement directly attributed to current "stay-at-home guidelines." While once again partially offset by an unnamed "third-party title," assumed to be Fortnite or Red Dead Redemption 2, investment in subscriptions like Xbox Game Pass continues to support Xbox ahead of a busy holiday season ahead.

Speaking on Microsoft's FY20 Q3 earnings call on April 29, CEO Satya Nadella also provided our first hard figures on Xbox Game Pass, surpassing 10 million subscribers across Xbox One and PC. Xbox Live also saw record engagement, with over 90 million users across devices, equating to a 42 percent jump year-over-year. Xbox Project xCloud game streaming trials also now span "hundreds of thousands of users," as technical tests expand across Western Europe.

With overall revenue up, Microsoft claims "COVID-19 had a minimal net impact on the total company revenue."

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Matt Brown
Matt Brown

Matt Brown is Windows Central's Senior Games Editor, Xbox & PC, at Future. Following over seven years of professional consumer technology and gaming coverage, he’s focused on the world of Microsoft's gaming efforts. You can follow him on Twitter @mattjbrown.

1 Comment
  • Pretty good to only have declined 1% in gaming rev given the end of a console cycle. Also consider the drop off in Fortnite likely causing a large drop in revenue from previous quarters. Game Pass at 10 million subs and 90 million Xbox Live accounts is an amazing achievement from 2013.