Games News

Microsoft's gaming business passes $10 billion for the first time

Microsoft
Original Xbox Logo
Original Xbox Logo

Microsoft's Q4 fiscal report is in and team Xbox have got a lot to be happy about. The company's annual gaming revenue has exceeded $10 billion for the first time while Xbox software and services reported on-year growth by 36 per cent.

We're talking fiscal years here so Microsoft's fourth quarter ended with 30 June 2018. Yeah, I know, it sucks to be fiscal Santa in searing heat.

Anyway, Microsoft's fourth quarter gaming revenue stands at $2.28 billion, compared to $1.64 billion for the same quarter in FY2017, while annual revenue amounted to $10.35 billion, up from $9.05 billion in FY2017. This means Microsoft's gaming revenue has grown by 39 per cent, while annual revenue grew by upwards of 14 percent.

Xbox software and services are up by 36 per cent compared to the previous fiscal year. Interestingly, Microsoft said that this growth was driven by third-party titles, rather than the company's in-house games. So basically, Fortnite.

Microsoft reported 57 million active users on Xbox Live, up from 53 million in Q4 FY17, which is a decent improvement, even if it's a bit off Microsoft's goal. Apparently, the company aimed for 59 million, which is what they posted in second and third quarters of FY18. 

All in all, Microsoft have done well and their $10.35 billion in gaming revenue means they're still ahead of Nintendo's $9.7 billion but significantly behind Sony's $17.29. Not that anyone will be competing with Sony anytime soon, but still.

Interestingly, Microsoft have been touting "new hardware" leading up to these fiscal reports, prompting many to believe that the new Xbox is on the cards. Unfortunately, that doesn't seem to be the case, and at this point it's more likely we'll see peripherals.

MicrosoftBlack Xbox One console against a black bacgroundXbox One

I wonder whether Microsoft would settle for calling their next console Xbox Two. Sure would be indicative of the current state of the console market. Heck, if analysts turn out to be right, they might as well skip to Xbox Three.