Microsoft announced its earnings for the second quarter of financial year 2019, revealing that game revenues are up 8 percent compared to the same period last year. This quarter ended on December 31.
Xbox software sales revenues and services were up 31 percent. So that means that Xbox One games and subscriptions for Xbox Live Gold and Xbox Game Pass are doing well.
So, how are software and services up by 31 percent but all of Microsoft gaming only up 8 percent? Console sales are not growing as much. Xbox One is becoming an older platform, with the system launching back in 2013. Microsoft released an updates version of the machine with stronger specs, Xbox One X, in 2017. Microsoft notes that hardware sales were down because they could not match last year, when Xbox One X was a new product. Microsoft does not reveal hardware sales numbers for Xbox One.
Game Pass has become a standout service for Microsoft. It gives users access to a downloadable game library for $10 a month. It includes console exclusives like Forza Horizon 4, which become available on the service on launch day.
While Sony has a similar service with PlayStation Now for PlayStation 4, Xbox Game Pass is outclassing it in terms of library quality. Nintendo only offers retro games in any kind of subscription-based service (which is tied into its general online gaming plan).
Xbox Live also continues to gain users, with 64 million people subscribed to the premium online gaming plan.
