Xbox gaming revenue up 51% thanks to next-gen hardware and Game Pass

Microsoft debuted the Xbox Series X/S during its fiscal Q2, and that pushed the company’s gaming revenue up 51% year-over-year. But the tech behemoth’s strength is not only in the console hardware — it’s also seeing continued gains in software and services.

Xbox hardware sales were up, of course. The Xbox Series X/S drove hardware revenue up 86% compared to the same quarter from last year. After seven years, the Xbox One had more than run its course, and demand for the new generation of hardware is high. Microsoft sold every Xbox it could make, and that suggests these hardware numbers should continue to his momentum into later this fiscal year and beyond.