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Xbox Cloud Gaming has been utilized to stream games by more than 20 million users. PC Game Pass memberships have increased 159% year over year, according to Nadella, who stated this during the company’s late Tuesday quarterly conference call.
Through its games in the cloud, the company is altering how games are delivered, played, and viewed. More than 20 million players have streamed games using the service thus far.
Additionally, the company is adding support for new gadgets such as the Meta Quest, as well as handhelds from Logitech and Razor. “We are innovating the entire technology stack to serve every business, with a focus on operational excellence and execution discipline,” Nadella said.
In addition, gaming revenue beat expectations, rising slightly by 4% at constant currency, on the back of higher console sales.
With shorter engagement times and third-party monetization of his content, revenue from Xbox content and services fell by 3% and at constant currency he increased by 1%. This decline was largely offset by an increase in Xbox Game Pass subscriptions.
Gross margins in this segment declined by 9% and 4% at constant currency as the revenue mix shifted to lower-margin businesses, with gross margins declining nearly 5 percentage points year-over-year.