Microsoft reported earnings on Tuesday, announcing that its Xbox division posted revenue of $16.28 billion for the calendar year 2021. It was Xbox's best year of all time based on revenue.

The positive momentum comes after Microsoft acquired ZeniMax/Bethesda, and the company's fortunes are poised to presumably grow even stronger with its proposed buyout of Activision Blizzard.

Gaming revenue overall rose for Xbox, including hardware and software. Revenue from content and services during the year rose 8.8% to $12.6 billion, thanks in part to growth in Game Pass (which now has 25 million subscribers) and first-party game sales (Forza Horizon 5 and Halo Infinite were two of Microsoft's biggest 2021 games).