Xbox hits record-breaking $3.92 billion Q1 thanks to Starfield, first-party games, Game Pass

Starfield's huge blockbuster release and continued Xbox Game Pass momentum helps Microsoft deliver a record-breaking Q1 period for the Xbox games division.

1 minute & 17 seconds read time

As we predicted, Starfield's breakout launch propels Xbox earnings to new heights.

Xbox hits record-breaking $3.92 billion Q1 thanks to Starfield, first-party games, Game Pass 66

Microsoft just broke new barriers with its Xbox games division. Xbox pulled in a record-breaking $3.919 billion in revenues during Q1'24, representing a +9% year-over-year increase, or a jump of about $309 million dollars over last year's results. Starfield's significant launch helped kick off Microsoft's new Fiscal Year 2024 timeline with a big earnings milestone.

To put this number into perspective, Xbox made more in this Q1 period (July - September, 2023) than any other non-holiday period in the platform's entire 22-year history. Like its competitors Nintendo and PlayStation, Xbox makes most of its earnings from the critical year-end holiday timeframe. Starfield was undoubtedly a big part of these results, with the game becoming the top-earning premium title of September 2023 and amassing 6 million players shortly after launch.

Xbox hits record-breaking $3.92 billion Q1 thanks to Starfield, first-party games, Game Pass 124

Xbox's significant Q1 revenues were driven primarily by content & services, which was up 9% year-over-year, the company says in a Form 10-Q SEC filing. Activision-Blizzard revenues have not yet been included in Xbox's figures--once that happens, we should expect to see a $1 to $2 billion+ uptick in quarterly revenues.

We have the following quick stats from Xbox's Q1'24 results:

  • Gaming revenue grew 9% (up 8% Constant Currency)
  • Xbox content and services revenue grew 13% (up 12% CC) driven by growth in first-party content and Xbox Game Pass
  • Xbox hardware revenue declined 7% (down 8% CC)

Microsoft CEO Satya Nadella may also comment on Xbox's performance for the quarter, and we may get new updates on Xbox Game Pass subscriber numbers.

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Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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