Xbox Game Software Revenue Soars, Offset by Declining Hardware Revenue

Microsoft released its quarterly financial results, talking about the performance of the Xbox business in the months between July and September.

October 26, 2017

Today Microsoft released its quarterly financial results related to the first quarter of fiscal year 2018, which corresponds to the period between July 1st and September 30th. Of course, that included information about the performance of the Xbox business and Xbox Live.

In the slide below you can see the results of the “More Personal Computing” business segment, which includes gaming.

Gaming revenue grew by 1% year-over-year (from 1.885 billion dollars to 1.896 billion dollars) with a strong performance in game software and services, unfortunately, offset by lower revenue from hardware.

Specifically, Xbox software and services revenue grew considerably by 21% year-on-year, pushed by the momentum of digital distribution and strong performance of games. Xbox Live monthly active users grew year-on-year by 13% to 53 million. The number was essentially flat compared to the latest quarter (Between April 1st and ended on June 30th).

Looking at the results for the corporation as a whole, all the relevant value were in the black and increasing solidly year-on-year.

  • Revenue was $24.5 billion and increased 12%
  • Operating income was $7.7 billion and increased 15%
  • Net income was $6.6 billion and increased 16%
  • Diluted earnings per share was $0.84 and increased 17%

Why Ratchet & Clank is the Most Important PS5 Game

If you want to compare today’s results with those of the previous quarter (which started on April 1st and ended on June 30th, 2017), you can check those out in our dedicated article from July.

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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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