Microsoft has released its latest quarterly financial report, and it hasn’t been a strong quarter for Xbox.
While Microsoft’s Cloud services have grown, Xbox saw an increase of just 1% year-over-year to $2.5 million. This has been attributed to slowing console sales, the offset of a comparatively strong quarter last year, and the fact that the Xbox One is reaching the end of its lifecycle.
In gaming, revenue declined 7% which was also presumably down to a decrease in console sales.
While Gears of War 5 was anticipated to be a big success story thanks to its 3 million players in its first launch weekend, it’s mostly the continued growth of Xbox Game Pass subscriptions that has helped Microsoft and Xbox most of all. Microsoft CEO Satya Nadella noted on the financial call that the quarter saw record breaking numbers when it came to Xbox Live monthly active users, although no exact figures were offered.
On the whole, Microsoft reported $33.1 billion in revenue, up 14% year-on-year which has been somewhat down to the 25% revenue growth at LinkedIn. Net income came in at $10.7 billion, a 21% increase year-on-year, so it’s hardly like Microsoft should be worried.
These figures do suggest it’s time to shake things up a bit for Xbox. A new console should re-enliven that, and perhaps that’s why there are key changes within the company such as the recent promotion of Harvey Eagle.
Story by Jennifer Allen.