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Xbox Services & Content Revenue Grows 2% Year On Year; Microsoft Gaming Revenue Down 1%

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Xbox Services & Content Revenue Grows 2% Year On Year; Microsoft Gaming Revenue Down 1%

Today, Microsoft announced its financial results for the third quarter of the fiscal year 2020, , related to the period between January 1 and March 31.

Today, Microsoft announced its financial results for the third quarter of the fiscal year 2020, , related to the period between January 1 and March 31.

First and foremost, we get an update on the performance of the More Personal Computing business, which includes Microsoft’s gaming division and the Xbox brand.

All the relevant data can be found in the slides below.

We learn that gaming revenue was essentially flat year-on-year (with a small 1% decline), while revenue for Xbox services and content increased by 2%.

Stay-at-home guidelines increased engagement, but this was partially offset by the comparison with a strong third-party game last year.

While a recent relevant change in the way Microsoft reports its figures excludes absolute revenue for gaming and other specific business fields (including Xbox Live monthly active users) from the main documents, the form 10Q includes more details: we learn that the revenue for gaming was 2,349 million dollars, compared to 2,363 million earned during the same quarter last year.

We also learn that Xbox hardware revenue decreased by 20% year-on-year, primarily due to a decrease in the price of consoles sold.

In terms of Microsoft as a whole company, the key results are as follows.

  • Revenue was $35.0 billion and increased 15%
  • Operating income was $13.0 billion and increased 25%
  • Net income was $10.8 billion and increased 22%
  • Diluted earnings per share was $1.40 and increased 23%

If you want to compare, you can check out the results from the previous quarter (from October to December) published by Microsoft in January.

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