Microsoft Reports Financial Results Ahead of Xbox One X Launch

With a revenue of $1.896 billion, Microsoft has registered a growth of 1% in the division from last year according to latest financial results

Microsoft has reported its financial results for the first quarter of the fiscal year 2018 that ended on September 30, 2017. During that period, the company has garnered a gaming revenue of $1.896 billion, up by 1% from what it was during the same period last year.

The revenue has been accumulated mostly through services and software, which was up by 21% according to the financial results published. A major chunk of that has been courtesy of a surge in Xbox Live transactions. However, the revenue per transaction has shown a decline.

Alongside, Microsoft has also revealed that the Xbox Live monthly active users have grown in this period by 13% to 53 million. The figure represents all those who have logged in on Xbox One, Xbox 360, or PC in the last 30 days.

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Contrary to the software surge, Microsoft saw a decline in hardware sales, dropping down the revenue by over 48% in a year. Microsoft has sold fewer units comparatively, and it was added by the fact that they were sold at lower prices.

Indeed, the company aims to turn it around with the upcoming Xbox One X consoles that are priced a premium point of $500. However, Microsoft doesn’t expect the console to outsell the cheaper Xbox One S given that it’s not targeted for all, according to an earlier revelation by Xbox chief Phil Spencer. This was also echoed by Microsoft CEO Satya Nadella during the post-earnings conference call.

More Personal Computing division of Microsoft made a revenue of $9.4 billion, close to what it has garnered a year ago. Overall, the revenue saw an increase of 12% to $24.5 billion, with operating income going up by 15% to $7.7 billion

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Author: Akhil Unnikrishnan

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