Xbox One

Xbox One X Launch Drives 14% Revenue Growth for Xbox Hardware, 8% Growth for Microsoft's Gaming

Microsoft just announced its financial results for the second fiscal quarter of 2018, giving more info on the performance of the Xbox and gaming business.

By Giuseppe Nelva

January 31, 2018

Today Microsoft announced its financial results for the second quarter of fiscal year 2018, which is related to the period between October 1st and December 31st, 2017. The related press release and presentation included relevant information on the state of the Xbox business.

Below you can check out the results of the “More Personal Computing” segment of the business, which includes gaming.

Overall gaming revenue grew by 8% driven by a sizable 14% increase in hardware revenue due to the launch of the Xbox One X in November. Gaming software and services revenue also grew 4%, while Xbox Live monthly active users grew 7% year-on-year to 59 million. This also shows a substantial increase from the 53 million MAU reported for the prior quarter.

The aforementioned growth in gaming revenue drove a 2% sales increase for the whole “More Personal Computing” segment, while gross margins for gaming decreased with the release of the Xbox One X. This is quite normal when a new console launches.

We also get the revenue and profit figures for the corporation as a whole, with all the relevant values firmly in the black, and showing solid improvement year-on-year. You can check them out below.

  • Revenue was $28.9 billion and increased 12%
  • Operating income was $8.7 billion and increased 10%
  • GAAP net loss was $(6.3) billion and non-GAAP net income was $7.5 billion
  • GAAP diluted loss per share was $(0.82) and non-GAAP diluted earnings per share was $0.96
  • GAAP results include a $13.8 billion net charge related to the Tax Cuts and Jobs Act (TCJA)

If you want to compare the results announced today with those of the previous quarter (between July 1st and September 30th, 2017), you can find them in our dedicated article.

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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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