Microsoft Has Released Their Third Quarter Numbers
Today Microsoft announced their newest numbers for the third quarter of the 2017 fiscal year and they announced that their gaming revenue is up from the same time last year! With the Scorpio coming out later this year, and the successful launches of some huge programs, like the Xbox Game Pass, on the Xbox One, these numbers come as no surprise.
Even though the new financial report shows the decline in revenue in the areas of mobiles, tablets and computers, it shows an increase in Microsoft’s gaming revenue. To put the numbers into perspective, while the revenue declined by 7%, the revenue from the gaming industry was up by 4% for the quarter, raking in 1.928 billion dollars! Microsoft is claiming the increase in revenue is due to Xbox Live and a strong game line-up.
Microsoft revealed that their numbers were in the black for all areas. Check out the summary of revenue below. For reference, GAAP means that the numbers available were reached using generally accepted accounting principles.
- Revenue was $22.1 billion GAAP, and $23.6 billion non-GAAP
- Operating income was $5.6 billion GAAP, and $7.1 billion non-GAAP
- Net income was $4.8 billion GAAP, and $5.7 billion non-GAAP
- Diluted earnings per share was $0.61 GAAP, and $0.73 non-GAAP
In the “More Personal Computing” segment, which includes the gaming portion of sales, it was mentioned that active users on Xbox Live were 52 million during the quarter, up from 46 million during the same quarter last year, and only a slight decline from the 55 million users during the holiday season. With that said, Microsoft grew 13% year-on-year across Xbox, Windows 10 and mobile platforms. Software and services revenue also increased by 7% compared to last year, which was driven by digital distribution and a “strong game line-up.” No mention was made of hardware, probably meaning that the fluctuation over the past year likely wasn’t worth mentioning.