Over 10 million people now stream games with Xbox Cloud Gaming

Microsoft posted unusually strong quarterly results on its latest earnings call. Its revenue was $49.4 billion, up 18% from the same period last year. The company noted that revenue from Xbox content and services also grew 4%, and it has more data to share in this area.

During an earnings call, Microsoft CEO Satya Nadella announced that 10 million people have streamed games through Xbox Cloud Gaming. While this does sound like an impressive number, it's important to note the lack of context.

For example, there's no mention of how many of those 10 million people are currently subscribed to the $14.99-per-month Xbox Game Pass Ultimate (which is the only tier that offers cloud streaming) service, and what exactly constitutes streaming , and whether accounting has been cancelled. In theory, a person could sign up for Xbox Game Pass Ultimate for $1 for a month, stream a game for five minutes, decide it's not for them, and then cancel, not sure if Microsoft will count that in its 10 million statistic . My guess is that it is.

That said, Xbox Games did have a very good quarter, as evidenced by 4% growth in content and services. Xbox hardware also had its strongest March sales in more than a decade. Hardware revenue grew 14%, and gaming revenue overall soared to $3.74 billion (up 6%). We haven't updated the numbers for Xbox and PC Game Pass subscribers, but last we heard, the number was 25 million.

However, the company does expect the game to be more difficult in the next quarter. In a forward-looking statement, it said it expected Xbox revenue to decline due to hardware production and supply difficulties.

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