Xbox has revealed that revenue from video games reached $2.29 bn over the three month period 30 March to 30 June. This is an increase of 39 per cent from the same period last year.
"Gaming revenue increased $643 million or 39 per cent, driven by higher revenue from Xbox software and services. Xbox software and services revenue increased 36 per cent, mainly from third-party title strength," said Microsoft in a press release.
Underlying the increase in revenues is the fact that many more people are buying games and microtransactions from the Xbox digital store. One of the main reasons for this is the hugh popularity of the free-to-play Fortnite Battle Royale, which recently exceeded $1 bn in revenues.
The popular battle royale game is available on mobile, PC, PlayStation 4, Nintendo Switch and Xbox One, with many players eager to acquire cosmetic items which are paid for with cash. Microsoft receives a 30 per cent cut of all purchases made by gamers on the Xbox digital store,
It's not just games that are bringing more revenues for Microsoft; the number of people with an Xbox Live subscription has risen by eight per cent, from 53 million in the last quarter of 2017 to 57 miliion in the first quarter of 2018.
Microsoft's financial statement reads: "Gaming revenue increased $643 million or 39 per cent, driven by higher revenue from Xbox software and services. Xbox software and services revenue increased 36 per cent, mainly from third-party title strength."
Another factor that could have boosted the earnings for Microsoft is the introduction of Nintendo's new gaming platform: the Nintendo Switch. Users have the option to log into Xbox Live and many users will have bought Xbox Live subscriptions in order to play on the Switch.
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