Friday, October 23, 2026

Microsoft Video Game Sector Has First $5 Billion Quarter

  • Q2 2021 overall gaming revenue increased 51% over the prior year.
  • The quarter included the launch of the Xbox Series X and Series S — the most successful console debut in Microsoft history.
Microsoft's video game division earned record profits.
Microsoft

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The video game business for Microsoft soared to new heights in its second fiscal quarter of 2021.

The technology giant surpassed $5 billion in gaming revenue in a single quarter for the first time as overall gaming revenue increased 51% over the prior year. 

The quarter included the launch of the Xbox Series X and Series S — the most successful console debut in Microsoft history. Xbox hardware revenue grew 86%. 

Microsoft’s gaming content and services benefited as well:

  • Xbox Live, which allows gamers around the world to play with one another, saw revenue increase 40%. The service now has more than 100 million monthly active users.
  • Xbox Game Pass, which offers over 100 games for $9.99 per month, is up to 18 million active users.

“What we have witnessed over the past year is the dawn of a second wave of digital transformation sweeping every company and every industry,” CEO Satya Nadella said on the company’s earnings call. “Digital capability is key to both resilience and growth.”

Microsoft’s overall revenue totaled $43.1 billion, up 17% year over year.  Profits were $15.5 billion, up 33%. 

The company’s shares were up 0.25% Wednesday to $232.90. 

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