Microsoft is carving a strong foundation less than a year into the current console generation.
They have been adding high-profile developers to Xbox Game Studios, including Ninja Theory and the industry-shattering Bethesda Studios. While Game Pass continues to expand its library and acts as one of the biggest selling points for Xbox.
And it seems like this prowess has paid off as Xbox Series X and S have hit the ground running.
Xbox Series X and S Are Microsoft's Fastest-Selling Consoles In History
In the company's fourth-quarterly earnings call, Microsoft CEO Satya Nadella spoke highly of Xbox Series X|S's sales:
Millions already stream games to their desktops, tablets, and phones, and the Xbox Series S and X are our fastest-selling consoles ever with more consoles sold life-to-date than any previous generation.
Nadella mentioned Game Pass's influence in driving these numbers:
We’re all-in on games. At E3 last month we unveiled our biggest games lineup ever announcing 27 new titles which will all be available to game pass subscribers. Game pass is growing rapidly and it’s transforming how people discover, connect, and play games. Subscribers play approximately 40% more games and spend 50% more than non-members.
Revenue accounted for Microsoft's gaming division was up $357 million and 11% year-over-year thanks to the Xbox Series X|S' success. Despite this, CFO Amy Hood mentioned that the "console growth will again be constrained by supply" during the rest of the fourth quarter.