Off the back of the earlier reports that Game Pass revenue was down, Microsoft have released their Q1 FY22 results with increases to the Xbox hardware driving the performance.

Gaming revenue increased $501 million or 16% driven by growth in Xbox hardware. Xbox hardware revenue increased 166% driven by higher volume and price of consoles sold due to continued demand for Xbox Series X|S, on a low prior year comparable impacted by a slowdown in volume of consoles sold ahead of Xbox Series X|S launches. Xbox content and services revenue increased 2% driven by growth in Xbox Game Pass subscriptions and first-party titles, offset in part by a decline in third-party titles, on a strong prior year comparable that benefitted from stay-at-home scenarios.