Microsoft earned $2.3 billion on games in the quarter
Microsoft reported for the 3rd quarter of fiscal year 2020. Its gaming division does not shine with success. Its quarterly revenue is $2.3 billion, but the growth rate is rather negative.
For Microsoft, the fiscal quarter lasted from January to March inclusive. Here are its results:
- revenue from the gaming business in the third quarter amounted to $2.3 billion dollars. And it sank by 1% in annual terms. In the same quarter of 2019, the segment earned $14 million more;
- but it is worth noting that in the 2nd quarter Microsoft predicted a double-digit decline in gaming revenue;
- sales of Xbox software and services in comparison with the 3rd quarter of 2019 increased by $ 33 million, that is, by 2%. Note that last year the segment felt better: then the growth of quarterly sales reached 12% in annual terms;
- revenue from sales of Xbox consoles decreased by 20%. Microsoft explains this by the fall in their prices;
- The most positive news was the growth of the Xbox Game Pass audience. The number of subscribers now exceeds 10 million people. The company is also pleased with the Microsoft xCloud service: “hundreds of thousands” of active users are registered in its beta.
The disappointing growth rates of the gaming business and Xbox, according to Microsoft, are associated with the traditional lull after Christmas sales. In addition, the life of the Xbox One is coming to an end, which also affected the revenue of the divisions. However, Microsoft was just expecting this.
As for COVID-19, the spread of the virus, according to the company, had a minimal impact on its financial condition.
General figures
- Microsoft’s separate business, which includes games, Xbox, as well as Windows OEM licenses, Surface devices and search advertising, earned $11 billion in the quarter. This is 3% more in annual terms.
- The profit of this segment increased significantly — by 15% to $3.63 billion.
- In total, Microsoft earned $35 billion in the quarter. This is also 15% more than in the 3rd quarter of the last fiscal year. Against this background, it can be seen that the growth rate of the gaming division of the company, as in the past year, is one of the lowest.
Also on the topic:
Share with us, write to press@app2top.ru
