A recent Microsoft earnings call showed that Xbox hit a new record for monthly active users. This news broke just one day before the Xbox Developer Direct showcase which will feature games from both Xbox Game Studios and Bethesda.
Although still a relatively new player in the gaming industry, Xbox continues to be one of the most popular platforms in the current gaming space. A lot of its success in recent years has been attributed to the proliferation of Xbox Game Pass which has given millions of players easy access to high-profile games such as Persona 4 Golden and Monster Hunter Rise. These achievements have continued despite some notable setbacks such as layoffs, the current state of Halo Infinite under developer 343 Industries, and a lawsuit from the FTC regarding its acquisition of Activision Blizzard.
In a second-quarter earnings call on Tuesday, Microsoft CEO Satya Nadella stated that the monthly active user count for Xbox reached 120 million. He added that Xbox Game Pass reached "new highs" for subscriptions and has been bolstered by Xbox's partnership with Riot Games which gives subscribers access to premium content in games like Valorant and League of Legends. Nadella also mentioned the games currently in production from Xbox Game Studios and ZeniMax, affirming that more details on these games will be shown at tomorrow's showcase.
The news of this record-breaking user count broke roughly a week after the announcement of mass layoffs at Microsoft. These layoffs are particularly damaging to its gaming division which includes developers under the Xbox Game Studios umbrella such as well as Bethesda Game Studios. Despite the lack of first-party Xbox titles in the past year, it can be inferred that the continued popularity of Xbox Game Pass is a strong factor in these numbers.
A great deal of the recent news surrounding Microsoft's gaming division has come in the wake of last year's controversial announcement of Microsoft's acquisition of Activision Blizzard, something that has received increased scrutiny from regulatory agencies and the broader gaming community. This furor has been exacerbated as the merger came with a hefty price tag of about $68 billion. This buyout plus the news of these new records have not helped to quell broader criticism of Microsoft's leadership. While still experiencing success, the public reputation of the Xbox brand has been declining, and it will be down to those in charge to help alleviate these concerns.
Source: Microsoft