How's Xbox Doing? Here Are The Big Takeaways From Microsoft Earnings

Microsoft today reported earnings for the quarter ended March 31, and the company's Xbox division posted strong numbers. The Xbox business saw revenue rise 18 percent to $2.25 billion, led by gains in software and services, not hardware. Software and services posted gains of 24 percent, and importantly, Microsoft said this was driven "mainly from third-party title strength." It's notable because it shows Microsoft can have a successful quarter, even when it relies on games made by other companies. Microsoft's Sea of Thieves was released on March 20, so it is counted within the quarter, but only for a few days. Still, it's interesting that it's not mentioned in Microsoft's report today, as Sea of Thieves quickly became Microsoft's fastest-selling new IP on Xbox One.

The company's fortunes may improve further still when some of its own big games come out later this year like State of Decay 2 and Crackdown 3, as well as whatever might get announced at E3 in June.

Additionally, Microsoft announced that the number of "active" Xbox Live users rose 13 percent to 59 million for the quarter. Microsoft said Xbox Live posted "continued growth" across Xbox One, Windows 10, and mobile when it comes to Xbox Live.

Microsoft's Xbox business unit is part of the company's More Personal Computing division, which also includes Windows Commercial and Windows OEM and Surface. The More Personal Computing division posted a revenue gain of 13 percent. Microsoft overall--comprising all divisions--posted revenue of $26.8 billion (up 16 percent) and a profit of $7.4 billion (up 35 percent), so it was good times all around for Microsoft this quarter.

The next big event for Xbox is E3, which takes place in June. Microsoft has big plans for this year's event, and we're sure hoping to see the next Halo and lots more.