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Xbox Content & Services Revenue Grew 65% YoY; Hardware Revenue Grew 49%

Today, Microsoft announced its financial results for the fourth quarter of the fiscal year 2020, related to the period between April 1 and June 30.
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Today, Microsoft announced its financial results for the fourth quarter of the fiscal year 2020, related to the period between April 1 and June 30.

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Firstly, 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 is included in the slides below.

Xbox Content and services revenue grew a whopping 65% year-on-year ($1.2 billion), with a 64% growth ($1.3 billion) in overall gaming revenue driving a 14% revenue increase for the whole More Personal Computing business.

This was due to record engagement including the strength from third-party games and the stay-at-home guidelines related to the COVID-19 pandemic.

On top of that, we learn in the Form 8-K that Xbox hardware revenue increased 49%, primarily due to an increase in the volume of consoles sold.

Gaming is also indicating as a contributing factor to a 12% increase in gross margin for the More Personal Computing business, leading to a $532 million (15%) profit growth for the segment as a whole.

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

  • Revenue was $143.0 billion and increased 14%
  • Operating income was $53.0 billion and increased 23%
  • Net income was $44.3 billion and increased 13% GAAP and 20% non-GAAP
  • Diluted earnings per share was $5.76 and increased 14% GAAP and 21% non-GAAP

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


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Author
Image of Giuseppe Nelva
Giuseppe Nelva
Proud weeb hailing from sunny (not as much as people think) Italy and long-standing gamer since the age of Mattel Intellivision and Sinclair ZX Spectrum. Definitely a multi-platform gamer, he still holds the old dear PC nearest to his heart, while not disregarding any console on the market. RPGs (of any nationality), MMORPGs, and visual novels are his daily bread, but he enjoys almost every other genre, prominently racing simulators, action and sandbox games. He is also one of the few surviving fans on Earth of the flight simulator genre.