Microsoft exceeded expectations with its FY21 Q4 earnings on Tuesday, closing the financial year with $46.2 billion in company-wide revenue. The Xbox platform holder also saw an 11% increase in gaming revenue year-over-year (YoY) this past quarter, while software and services revenue slumped 4%, following record numbers in 2020.
The latest figures come as many key Xbox markets look to reopen following the COVID-19 pandemic. The overall revenue increase demonstrated continued growth for the Xbox business, although with content and services failing to maintain momentum seen in its FY20 Q4 earnings, driven by surging numbers for digital entertainment. The company reported “record numbers” for Xbox engagement at the time, even scaling back some operations to account for unforeseen demand.
Microsoft has once again seen three-figure growth for Xbox hardware revenue this quarter, bolstered by the launch of Xbox Series X and Xbox Series S last November. The latest console generation continues to face supply constraints, with ongoing chip shortages failing to meet global demand. Console hardware shortages are expected to continue into the next financial year.