Xbox One X Helps Boost Hardware But Game Sales Fall In Microsoft’s Latest Quarter

Microsoft today reported earnings for its latest quarter ended December 31–and the news is good for the company’s Xbox gaming division. Total revenue rose by $303 million (or 8 percent) to $3.9 billion. The uptick in sales was driven in part by the launch of the Xbox One X in November. Microsoft has not disclosed a sales number for the console but it did sale the Xbox One X launch helped Xbox hardware revenue rise 14 percent.

Xbox games also sold well during the quarter, with software and services revenue jumping by 4 percent. This growth was attributed in part to better Xbox Live revenue, but offset in part by lower game sales due compared to the same period last year.

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Xbox software and services combined revenue increased 4%, primarily due to Xbox Live revenue growth. However, this was offset in part by a decrease in game sales revenue compared to the same period last year.

Microsoft also updated the latest Xbox Live active user figures; during the quarter, Microsoft recorded 59 million Xbox Live active users; this covers Xbox 360, Xbox One, Windows PC, and other devices. This is up nicely from 55 million during the same period last year. An “active” user is someone who has logged into Xbox Live over the past 30 days.

Overall, across all divisions, Microsoft reported revenue of $28.9 billion for the quarter, which is up 12 percent. Operating income came in at $8.7 billion, an increase of 12 percent.

Microsoft is holding an earnings call right now where it will discuss these results and answer questions from analysts. We’ll report back with more information if anything noteworthy is discussed.

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