Microsoft Expects “Strong” Xbox Performance in the Holidays in U.S. and U.K., but Lower Revenue

Microsoft Expects “Strong” Xbox Performance in the Holidays in U.S. and U.K., but Lower Revenue

During Microsoft’s quarterly results conference call, Chief Executive Officer Satya Nadella and Chief Financial Officer Amy Hood shared comments about the performance of the gaming business of the company and the outlook for the Holiday season.

Nadella talked about gaming being a leading driver of engagement on Windows 10:

“Gaming is a leading driver of engagement on Windows 10, and opens up new experiences and scenarios across Windows devices. For the past three consecutive months Xbox One has been the number one selling console in the United States giving us strong momentum heading into the Holiday season.

Our highly engaged Xbox Live fan base continues to grow across Windows 10, iOS and Android across up 21% year-over-year, and we now have 20 bullion hours of gameplay on Windows 10 PCs and tablets, over 5% increase year over year.”

Hood commented on the year-over-year decrease due to lower console hardware revenue, but mentioned that the company continues to “see strong engagement” on its platform with monthly active Xbox Live users up 21%.

Last, but not least, she provided the company’s prediction for the Holiday season, which is expected to be strong in the United States and in the U.K., while still having lower revenues due to lower pricing and consumers shifting away from Xbox 360 to the Xbox One models.

“In gaming we expect strong share performance in key markets like the U.S. and the U.K. this holiday, but overall revenue will decline given lower price points and lower overall console units as mix shifts towards Xbox One and Xbox One S.

We expect continued active engagement growth on our gaming platform, given the holiday season.”