Microsoft Announces Q3 Financial Results: 1.2 Million Xbox One Consoles Shipped; Xbox Revenue up 45%
It’s quarterly financial results day at Microsoft today, and Redmond’s corporation sent in a press release detailing the revenue for the quarter ended on March 31st right in time for the closure of the New York Stock Exchange.
The company announced a revenue of $20.40 billion for the quarter ended on march 31st. Gross margin, operating income, net income, and diluted earnings per share for the quarter were respectively $14.46 billion, $6.97 billion, $5.66 billion, and $0.68 per share.
In addition to that, the revenue mix changed, with cost of revenue increased by 24%, primarily due to increased Xbox and Surface production and expansion of the company’s data centers due to the continuing growth of Microsoft’s online services.
Of course there are news specific to the Xbox division as well, and according to the company, during the quarter 2 million Xbox consoles were sold in (shipped) to retailers. Of those 1.2 million were Xbox One units, while 800,000 were Xbox 360.
The Xbox platform revenue increased by 45%, contributing to a revenue for the Devices and Consumer Hardware divisio $1.97 billion with an overall increase of 41%. On the other hand gross margin decreased by 34% due to higher Xbox console sales and early lifecycle economics of the Xbox One.
As for the Devices and Consumer Other division, the revenue from transactions on Xbox Live increased by 17%. The press release also reiterated that Titanfall was the number one selling game in North America in March according to the NPD.
CEO Satya Nadella accompanied the release with a statement:
This quarter’s results demonstrate the strength of our business, as well as the opportunities we see in a mobile-first, cloud-first world. We are making good progress in our consumer services like Bing and Office 365 Home, and our commercial customers continue to embrace our cloud solutions. Both position us well for long-term growth.We are focused on executing rapidly and delivering bold, innovative products that people love to use.
CFO Amy hood also commented:
We delivered solid, broad-based financial results driven by strong execution and continued cost discipline. We are focusing our resources to drive growth and long-term shareholder value.
With another quarter in the bag, Microsoft steams on towards the end of the financial year. One thing is for sure. The Xbox division seems to be quite healthy.