Starfield Launch Drives Record Q1 Revenue for Microsoft, Offset by 7% Decrease in Xbox Hardware Sales

Starfield, becoming the biggest Bethesda game launch and driving Game Pass subscriptions to record levels, boosted Microsoft's Q1 gaming revenue to historically high levels, despite a decline in Xbox hardware sales.

Starfield, released last month on Xbox Series X/S and PC, became Bethesda's largest launch ever, attracting over 11 million players to date and leading to a 13% increase in overall Xbox content and services.
On Starfield's launch day, it set a record for the most Game Pass subscriptions added on a single day, further driving Game Pass subscriber growth which was described as ‘better than expected'.
In Q1, Microsoft's Xbox division reported revenue of $3.9 billion, marking its highest Q1 gaming revenue in history, despite a 7% decrease in Xbox hardware sales.
Microsoft expects revenues from its gaming division to grow by at least 40% in the next quarter, largely due to the recent acquisition of Activision Blizzard, which added significant depth to Microsoft's content portfolio with 13 billion-dollar-plus franchises.
Half of all Starfield players played the game on PC, indicating a significant reach beyond the console market for Microsoft's flagship new game.