Xbox's record $3.5 billion Q3 earnings solidifies all-time yearly high

Xbox has made record revenues for three quarters in a row, and FY2021 will set a new high watermark for the gaming division.

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Microsoft today announced its results for Q3'21 (Jan - March 2021) and confirmed another quarter of consistent Xbox growth. The games segment generated a whopping $3.533 billion in Q3'21, up a substantial $1.2 billion (+50%) over Q3'20. The growth driven by hardware, which was up +232% thanks to Xbox Series X/S sales, and Game Pass services/game sales which increased by $739 million (+34%) year-over-year.

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Between Q1-Q3 FY2021, Xbox gaming has made more money than any other full year of earnings. With one quarter to spare, Xbox pulled in $11.657 billion in total Q1-Q3 revenues. The second-highest point was FY2020 with $11.575 billion.

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Xbox quarterly revenues from 2017 - present.

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Xbox's Q3'21 period is a record for the gaming division.

Hardware sales volume should be comparatively lower in Q4 as lower chip supply restricts stock availability, but service earnings are likely to remain constant or grow thanks to Game Pass and steady game sales.