Xbox Game Pass Surges with Indiana Jones, Call of Duty; Hardware Sales Decline

During today's Q2 investors call, Microsoft CEO Satya Nadella announced that Indiana Jones and The Great Circle has captivated 4 million players. This revelation stands out as a highlight in an otherwise unremarkable earnings report for Microsoft's gaming division. Developed by MachineGames, this latest release has not only received critical acclaim and numerous awards but has also resonated with a significant player base. Although precise sales figures are elusive due to its inclusion in Xbox Game Pass, reaching 4 million players is a remarkable achievement, especially for a modern, AAA Indiana Jones game that came with a degree of uncertainty.

Our own review praised Indiana Jones and The Great Circle as an "irresistible and immersive global treasure hunt," and it has garnered nominations for Game of the Year and Best Xbox game. For a more detailed look, you can read our full review here.

In other Xbox news, Microsoft reported a 30% growth in Game Pass PC subscribers last quarter, setting a new revenue record. Additionally, cloud gaming saw an impressive 140 million hours of streaming. These figures contributed to a 2% increase in Xbox content and services revenue.

Despite these positive developments, challenges remain. Overall gaming revenue saw a 7% decline, and Xbox hardware revenue dropped by 29%. These numbers indicate that while Microsoft's focus on Game Pass is yielding results, there is still work to be done in the console and hardware sectors.

The growth of Game Pass on PC aligns with last quarter's strong lineup of game releases, including Indiana Jones and The Great Circle, Call of Duty: Black Ops 6, and Microsoft Flight Simulator, all of which were available on Game Pass from day one for Ultimate subscribers. This strategy appears to be paying off, as Microsoft continues to invest in its subscription service amidst efforts to recover in the hardware market.