Xbox smashes records with $15 billion revenues in FY2021

Today Microsoft announced its FY2021 figures, showing record growth in its video games business.

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Microsoft has enjoyed consistent year-over-year growth since it transformed Xbox from a console into a cross-platform service ecosystem. From the introduction of its industry-defining Xbox Game Pass service in FY2017, Microsoft has seen its Xbox segment take off not unlike its new Flight Simulator game.

This year marks the biggest spike in games revenue earnings. Throughout FY2021, Microsoft generated over $15 billion in earnings from Xbox (+37.2% year-over-year), including game and hardware sales, digital services, microtransactions, and multi-generation hardware.

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Microsoft's gaming performance in FY21 was nearly $3.8 billion higher than the previous $11.575 billion record set in FY20, and was significantly amplified by coronavirus lockdown measures that surged in-game revenues and game sales. The launch of the Xbox Series X/S duo in holiday 2020 also helped increase revenues.

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Remember that this isn't profit or net income. Microsoft will re-invest these earnings into first-party games development, multi-billion dollar R&D endeavors including AI, machine learning, and to help fund first-party games, as well as shore up infrastructures like Xbox LIVE and Project xCloud streaming.