Xbox Made More Revenue Than Nintendo This Past Year

Every primary industry in the world has a few companies which control the monopoly. Apple and Samsung are two companies that rule the tech industry and make the most profit. The same is the case with gaming where 3 companies hold the most sway with consumers.

Microsoft, Sony, and Nintendo are the 3 video game companies that are our gaming industry’s giants. Not only do they sell the most hardware, but their software also competes neck to neck with each other. But, the latter two have always had the upper hand over Microsoft. 

Xbox has made a name for itself but is still considered an underdog by the parent company. Even with the Activision Blizzard acquisition happening soon, Microsoft still thinks it will be inferior to the other two. However, numbers tell an entirely different story to the company manifesto. 

Major Takeaways:

• Microsoft made more revenue than Nintendo in the past fiscal year.
• The company made $2 billion more than the Japanese company.
• The weakening Yen is a major cause of this.

Xbox made more revenue than Nintendo from July 2021 to June 2022 by some margin. News website Tweaktown have reported these findings and they are interesting. The main reason for this difference in revenue is the weakening Yen in contrast with the Dollar. 

Xbox is not gaming's underdog.

Due to weak yen, Xbox ($16.22 bn) beat Nintendo ($14.08 bn) in revenues from July 2021 – June 2022.

This data provides more clarity on how big Xbox is, and adds more context to Microsoft's assertions.https://t.co/dOl7E8DvlM

— Derek Strickland (@DeekeTweak) October 5, 2022

Microsoft made a revenue of $16.22 billion during the time frame. Its 2nd quarter was the most profitable for the year 2022 as the company made $5.44 billion. So, the Xbox Series X developer set a record this past year despite the economic downturn. 

Nintendo on the other hand made $14.08 billion in the same period. Quarter 3 of 2022 was the most profitable for the company as it made $6 billion in its duration. The 1st Quarter of 2023 is also present in this period of 1 year. 

Hence, Microsoft made $2 billion more revenue than Nintendo due to the low conversion rate of Yen to USD. Beating one of the giants of the industry contradicts the company’s manifesto of being the underdog. Microsoft’s claims that the other two are still bigger aren’t wrong, but they are vague. 

Xbox certainly isn't an underdog in earnings and it will be a powerhouse once the Activision-Blizzard merger closes.

Here's a look at comparison of revenues between PlayStation, Xbox, Nintendo and Activision-Blizzard for the period of July 1, 2021 – June 30, 2022. pic.twitter.com/w6rDNifRmr

— Derek Strickland (@DeekeTweak) October 5, 2022

We get much more context from these numbers about what the industry is really looking like. Xbox isn’t far away from the other two even though the PlayStation 4 and Nintendo Switch did outsell the Xbox One. It currently makes most of its money from services like the Xbox Game Pass. 

By adding the titles of Activision Blizzard under its belt, the service will get even better. So, Microsoft has been underselling the Activision Blizzard deal and how it improves its biggest money maker. Adding Call of Duty to the Game Pass will make it unstoppable and so will Xbox exclusivity.