Microsoft announced its first-quarter earnings for its 2022 fiscal year on Tuesday, reporting a 22% increase in company-wide revenue at $45.3 billion. It also posted a 16% rise in gaming revenue, signaling continued year-over-year growth for its Xbox brand.
Xbox content and services saw a 2% year-over-year increase, attributed to growth in its Xbox Game Pass subscription service and in-house first-party titles. That uptick follows a strong previous fiscal year attributed to the COVID-19 pandemic, where Xbox services grew 30% amid a spike in demand for digital entertainment. Revenue from third-party titles declined over the period.
Microsoft also announced a 166% year-over-year jump in Xbox hardware revenue, driven by its latest generation consoles, Xbox Series X and Xbox Series S. That compares to a decline in Xbox One console sales throughout the first quarter of its 2021 fiscal year, prior to the November launch of its Xbox consoles.
These latest figures follow recent reports that Microsoft fell short of its Xbox Game Pass subscriber targets, achieving 37.45% growth versus its targeted 47.79% in its 2021 fiscal year. The numbers, published via a recent SEC filing, are among several performance goals for top executives at Microsoft. The latest official number on its Xbox Game Pass service confirmed 18 million subscribers as of January 2021.