Microsoft's gaming revenue declined 5% in the first quarter of the 2017 financial year, with the company blaming lower console revenue.
In the detailed breakdown of finances for Q1 2017 Microsoft revealed that its gaming division hasn't been doing so well recently, with a massive 5% drop in revenue when compared with the previous quarter.
Microsoft said this was driven by lower Xbox console revenue [but] offset by higher Xbox software and services revenue.”
It was also revealed that there are currently 47 million Xbox Live subscribers, which is a drop of around 2 million since the last quarter.
The revenue for the More Personal Computing section of Microsoft, of which Xbox is a core part, dropped by 2% but still brought in $9.3 billion.
We are helping to lead a profound digital transformation for customers, infusing intelligence across all of our platforms and experiences,” said Satya Nadella, chief executive officer at Microsoft. We continue to innovate, grow engagement, and build our total addressable market.”
It certainly wasn't bad news at all for Microsoft, as the company's Intelligent Cloud sector posted some impressive results. Revenue was up 8% with Azure revenue growing by 116%. Cloud based services seem to be high on Microsoft's agenda currently, and they are clearly doing well with this new push.
Our first quarter results showed continued demand for our cloud-based services," said Amy Hood, executive vice president and chief financial officer at Microsoft. We continue to invest, position ourselves for long-term growth, and execute well across our businesses.”