Xbox Game Pass Hits $5 Billion In Annual Revenue As Microsoft Tops Charts, Retail Chatter Explodes

Microsoft Inc.’s (MSFT) gaming subscription service, Xbox Game Pass, has garnered attention after CEO Satya Nadella confirmed it brought in close to $5 billion in revenue over the last year.  

“And Game Pass annual revenue was nearly $5 billion for the first time,” Nadella said during Microsoft’s fourth-quarter (Q4) earnings call on Wednesday.

He reviewed Xbox's performance over the past year and revealed that the platform now has 500 million monthly active users across various devices and services.

On Stocktwits, retail sentiment around Xbox’s parent, Microsoft, remained in ‘extremely bullish’ (88/100) territory amid ‘extremely high’ (90/100) message volume.

Microsoft stock inched 0.7% higher in Friday’s premarket. The stock experienced a 476% surge in user message count over the past week.

Nadella also stated that Microsoft ranked as the leading publisher on both Xbox and PlayStation during the fourth quarter. He praised the successful releases of Forza Horizon 5 on the PS5 and The Elder Scrolls IV: Oblivion Remastered.

Microsoft CFO Amy Hood added that revenue from Xbox content and services rose by 13%, or 12% when adjusted for currency fluctuations, thanks to stronger-than-anticipated results from first-party titles and Xbox Game Pass.

Despite the Gaming division’s recent gains, Xbox faced major setbacks earlier this month as significant layoffs, studio closures, and project cancellations took place. In the latest round of job cuts, Microsoft let go of more than 9,000 workers, nearly 4% of its entire workforce.

The company reported fourth-quarter adjusted earnings per share (EPS) of $3.65 and revenue of $76.441 billion, surpassing the analysts’ consensus estimate of $3.38 and $73.841 billion, respectively, as per Fiscal AI data.

Microsoft stock has gained over 26% year-to-date and over 27% in the last 12 months.

Also See: Roku’s Beat And Raise Q2 Sparks Analyst Upgrades, Retail Euphoria: ‘Still The Best Value Stock On The Planet’

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