Xbox records bumper quarter, but hardware sales have fallen

Microsoft's Xbox division has reported a record-setting quarter in terms of revenue despite a decline in hardware sales. The notable success is due to the sales from the first fiscal quarter spanning from July to September.

With the gaming division bringing in over 3.9 billion in total revenue, Microsoft has seen its most profitable quarter outside of holiday seasons. This tremendous growth is credited to first-party content and the Xbox Game Pass, especially the game Starfield which was released during this period.

Starfield stands as the best-selling game in the United States for September, and according to CEO Satya Nadella, never have so many Game Pass subscribers been added as on the day of Starfield's release.

The revenue generated from content and services have seen a 13% growth in comparison to the same period from the previous year, primarily due to the increasing popularity of Xbox Game Pass. However, there is a 7% decline seen in the area of hardware - indicating fewer console sales, particularly considering the increase in consumer prices for the Series X. Exact sales figures have not been released by the company.