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 attracted an impressive 4 million players. This milestone is a significant highlight in an otherwise routine earnings report for Microsoft's gaming division. Developed by MachineGames, this latest release has not only received critical acclaim but has also clinched multiple awards, making it a standout title in the gaming world. Despite the challenge of tracking exact sales figures due to its inclusion in Xbox Game Pass, reaching 4 million players is a testament to the game's appeal, especially for a modern, AAA Indiana Jones adventure that many were curious about.

We were thoroughly impressed with Indiana Jones and The Great Circle, describing it as an "irresistible and immersive global treasure hunt." The game has earned nominations for Game of the Year and Best Xbox game. For a deeper dive into our thoughts, you can read our full review here.

On the broader Xbox front, Microsoft shared that Game Pass PC experienced a 30% growth last quarter, setting a new record for quarterly revenue. Additionally, cloud gaming saw users logging 140 million hours of streaming, contributing to a 2% increase in Xbox content and service revenue.

However, there are areas where Microsoft needs to focus. Despite the robust performance of Game Pass, overall gaming revenue saw a 7% decline, and Xbox hardware revenue dropped by 29%. This indicates that while Microsoft's investment in Game Pass is yielding positive results, there is still work to be done in the console and hardware sectors.

The growth of Game Pass on PC aligns well with Xbox's strategy, especially given the release of major titles last quarter, including Indiana Jones and The Great Circle, Call of Duty: Black Ops 6, and Microsoft Flight Simulator. All these games were available on Game Pass from day one for Ultimate subscribers, showcasing the value and appeal of the service.