Xbox Console Revenue Drops While Software and Services Soar; Xbox Live Active Users Reach Record High

Microsoft reports its latest financial results, and while Xbox console revenue is down year on year, games and services shown strong performances.

on January 26, 2017 4:17 PM

Microsoft announced today its financial results for the second quarter of fiscal year 2017, ended on December 31st, 2016.

The company announced numbers in the black for the organization as a whole, as you can see below.

  • Revenue was $24.1 billion GAAP, and $26.1 billion non-GAAP
  • Operating income was $6.2 billion GAAP, and $8.2 billion non-GAAP
  • Net income was $5.2 billion GAAP, and $6.5 billion non-GAAP
  • Diluted earnings per share was $0.66 GAAP, and $0.83 non-GAAP

We also get specific results for the More Personal Computing segment of the company, which includes gaming.

Revenue for the gaming business was reported at $3,595 million. That’s more than twice as much as the revenue registered in the first quarter of the fiscal year, but that’s a given due to the holiday season.

Active Xbox Live users were 55 million during the quarter, up from 47 million in the first quarter of the fiscal year, also showing a 15% growth year-on-year. This marks a new record across Xbox platforms, Windows 10 and mobile devices.

IF

Gaming revenue dropped by 3% year-on-year (-1% in constant currency) due to lower Xbox console revenue caused by lower pricing and sales volume.

This was partly offset by a strong performance of software and services. Revenue in this segment grew by 18% (21% in constant currency) with digital purchases reaching one billion dollars in revenue during the quarter due to “continued adoption of digital distribution and a strong game lineup.”

As usual, It’s worth mentioning that the lower console sales volume isn’t necessarily related to the Xbox One, but they most probably come from the Xbox 360 side of the business.

IF

 /  Executive News Editor
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.