business news Microsoft: Revenue up for Xbox this year, but…
At Microsoft, the numbers follow each other and are not the same. The results for the giant’s fiscal fourth quarter show nuance. In absolute terms, the Redmond-based company did very well with an increase in sales. However, Windows and Xbox are down this quarter. A decline due to the lack of components and the deterioration of the market, according to Satya Nadella’s group.
At Microsoft when we publish the results of a fiscal quarter counted in tens of billions of dollars. With sales up 16% compared to the same quarter last year, the American giant’s revenue is $51.9 billion. Operating income was also up (+8%), generating $16.7 billion in net income, up 2%. The segments experiencing a rebound are Office (+9%), LinkedIn (+26%) and cloud-related services (+19%). For its part, Windows OEM (the price manufacturers pay to Microsoft to integrate Windows into their hardware) is flat (-2%).
The gaming segment declined over a quarter but not over the year
On the Xbox side, numbers are down in line with previously announced forecasts. Hardware-related revenue declined 11% while the content and services segment declined 6%. These sluggish results are explained by “less engagement and monetization‘ in the first and third titles. Overall, the gaming segment is down 7% year over year.
Amy Hood (Chief Financial Officer of Microsoft) clarifies during an earnings conference. Those lackluster numbers are partially offset by the observed increase in Xbox Game Pass subscriptions. However, no new number of subscribers was announced, so we remind you that in January 2022 the service had 25 million subscribers.
Microsoft President and CEO Satya Nadella confirms that the Xbox Series X | S is currently breaking the sales records of previous Xbox generations. He adds that The group has been the market leader in North America for next-generation consoles for three consecutive quarters. The big boss also reveals that 4 million users accessed Fortnite through the Xbox Cloud. Of these, 1/4 were completely new to the Xbox ecosystem. Also, Xbox is having a record fiscal year with $16.2 billion in revenue., which is good news for the manufacturer. Despite everything, the Redmond company in the game of prospects for the first quarter of the 2023 financial year predicts a further decline in the gaming segment.
If you’re wondering, know that no details about the proposed acquisition of Activision Blizzard have been announced. To some analystsnothing should prevent Microsoft from achieving its goals and the deal could be officially confirmed soon. Will the buyout take effect before the release of Diablo IV? That is the question.
The American giant reminds that the development of macroeconomic conditions, as well as other unforeseen elements, had an impact on the numbers. Unfavorable exchange rate developments, production shutdowns in China and the war in Ukraine (which led to a reduction in Microsoft’s activities in Russia) impacted results. As for the major manufacturers, on Friday, July 29, 2022, Sony will present its first quarter results.