Microsoft CEO: "We Continue to Drive Growth in Gaming;" Outlook Until September 30th Shared

During Microsoft’s financial conference call for fiscal year 2016, CEO Satya Nadella and CFO Amy Hood provided more color on the performance of the Xbox Business, also sharing the outlook for the current fiscal quarter ending on September 30th.

Nadella started by giving an overall idea of the performance of the business defining the games announced at E3 the “biggest line-up of exclusive games ever for Xbox One and Windows 10 PCs:”

“We continue to drive growth in gaming, by connecting fans on Xbox Live across Windows 10, iOS and Android. Just this quarter we launched our Minecraft Realms subscription on Android and iOS. Overall Engagement on Xbox Live is at record levels, with more than 49 million monthly active users, up 33% year over year.

At  E3 we announced our biggest line-up of exclusive games ever for Xbox One and Windows 10 PCs, and we announced Xbox Play Anywhere titles, where gamers can buy a game once, and play it on both Windows 10 PCs and Xbox One. We also announced two new members of the Xbox One consoles family, the Xbox One S and Project Scorpio.”

Hood then moved to spell the outlook for the current fiscal quarter. The company expects 2% negative impact on total revenue, with only 1% negative impact in the “More Personal Computing” segment that includes Xbox. Total revenue should be $21.8 to 22 billion in line with historic seasonality. More Personal Computing  is expected to generate between $8.7 and  9 billion in revenues.

According to Hood, gaming revenue will be driven by the “same factors as in Q4”  FY 2016, which were lower hardware revenue partly offset by higher Xbox Live revenue.

Incidentally, Nadella mentioned during the call that Windows 10 is now running on 350 million devices.

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Giuseppe Nelva

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) and MMORPGs 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 of the flight simulator genre on Earth.

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