Xbox Game Pass Soars, Hardware Sales Dip

Microsoft CEO Satya Nadella announced during today's Q2 investor call that Indiana Jones and The Dial of Destiny has reached 4 million players. This positive development stands out in an otherwise unremarkable earnings report for the gaming division. MachineGames' latest title has earned critical praise, numerous awards, and now boasts millions of players. While precise sales figures are unavailable due to its inclusion in Xbox Game Pass, 4 million players is a significant achievement, especially given the initial uncertainty surrounding a modern, AAA Indiana Jones game.

We ourselves lauded the game, describing it as an "irresistible and immersive global treasure hunt," and nominated it for Game of the Year and Best Xbox Game. Read our full review here.

Elsewhere in the Xbox ecosystem, Microsoft reported a 30% increase in Game Pass PC subscribers last quarter, setting a new quarterly revenue record. Cloud gaming saw 140 million hours streamed. These factors contributed to a 2% growth in Xbox content and services revenue.

However, challenges remain. Despite exceeding expectations, overall gaming revenue declined by 7%, and Xbox hardware revenue dropped by 29%.

In summary, Microsoft needs to improve its console and hardware performance. However, its continued investment in Game Pass seems to be yielding positive results, particularly the strong growth of Game Pass on PC. This growth is likely fueled by last quarter's major game releases, including Indiana Jones and The Dial of Destiny, Call of Duty: Black Ops 6, and Microsoft Flight Simulator, all available on Game Pass day one for Ultimate subscribers.