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 brought a glimmer of excitement to an otherwise routine earnings report for Microsoft's gaming division. MachineGames' latest title has not only earned critical acclaim and multiple awards but also attracted a substantial player base. While exact sales figures remain elusive due to its inclusion on Xbox Game Pass, reaching 4 million players is a testament to the game's appeal, especially given the uncertainty surrounding a modern, AAA Indiana Jones game.

We were thoroughly impressed, describing it as an "irresistible and immersive global treasure hunt," and it received nominations for Game of the Year and Best Xbox Game. Dive deeper into our thoughts with our full review here.

However, there are challenges ahead. Despite the robust performance of Game Pass, overall gaming revenue dropped by 7%, and Xbox hardware revenue saw a significant decline of 29%.

What does this signify? Microsoft needs to bolster its presence in the console and hardware markets, yet its strategic focus on Game Pass is yielding positive results. The growth of Game Pass on PC aligns with last quarter's strong lineup of major releases, including Indiana Jones and The Great Circle, Call of Duty: Black Ops 6, and Microsoft Flight Simulator, all available on Game Pass from day one for Ultimate subscribers.