Microsoft announced the results for the quarter ended December 31, 2020. Revenue was $43.1 billion and operating income was $17.9 billion. Microsoft’s gaming business had a great quarter with some record numbers. Xbox content and services revenue increased 40% when compared to last year.
Microsoft also surpassed $5 billion in gaming revenue for the first time this quarter. Microsoft highlighted that the launch of the Xbox Series X and Series S was the most successful in its history, with the most consoles ever sold in a launch month. Microsoft exceeded $2 billion in revenue from third-party titles this quarter for the first time. When it comes to services, Xbox Live has more than 100 million monthly active users, while Game Pass now has 18 million subscribers.
In the next quarter, Microsoft expects gaming revenue growth of approximately 40 percent driven by next generation console sales as well as Xbox content and services revenue in the mid-20 percent range.