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    Xbox Game Pass Grows 30% After Major Titles, Hardware Sales Drops

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    During Microsoft’s Q2 investor call, CEO Satya Nadella shared that Indiana Jones and The Great Circle have reached 4 million players, a significant milestone for the game. This success is particularly notable against what was otherwise pretty dull earnings showing for Microsoft’s gaming division.

    Featuring beloved characters and stunning visual effects, it received critical acclaim and several awards. As the game is on Xbox Game Pass and so sales are difficult to pin down, 4 million players are quite a few for a modern, AAA Indiana Jones game— as initial expectations around the game weren’t exactly set in stone.

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    Xbox Game Pass Sees 30% Growth After Indiana Jones, Call of Duty, While Hardware Sales Drop 29%

    The game has received consistent praise, particularly for the engaging, immersive world-spanning treasure hunt, which helped it earn nominations for Game of the Year and Best Xbox Game. They also reflect just how well-regarded the game was with both players and critics, making it one of the biggest breakout hits in this year’s lineup.

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    Beyond the Indiana Jones success, Microsoft also revealed that Game Pass for PC reached 30% growth last quarter and that it set a new quarterly revenue record. Also, notable growth happens in cloud gaming with 140m hours streamed overall. Those successes showed up as a 2% lift in revenue from Xbox content and service — a solid performance that will buoy Microsoft’s digital and Xbox streaming portfolio. However, challenges persist.

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    Even with the Game Pass growth, overall gaming revenue decreased by 7%, and Xbox hardware revenue declined by 29%. This surge suggests Microsoft has room to grow in the console and hardware space. Even so, the growth of Game Pass, especially with the releases of new games such as Indiana Jones, Call of Duty: Black Ops 6, and Microsoft Flight Simulator, was an extremely strong catalyst for growth, especially among PC users and Ultimate subscribers.

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    FAQs

    1. What drove the growth of Xbox Game Pass in Q2?

      The growth of Xbox Game Pass in Q2 was driven by major game releases like Indiana Jones and Call of Duty: Black Ops 6, with a 30% increase in PC Game Pass subscriptions.

    2. Why did Xbox hardware sales decline?

      Xbox hardware sales dropped by 29% due to weaker demand for consoles, despite strong content and service performance.

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