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How's Xbox Doing? Key Takeaways From Microsoft's Earnings

Gaming revenue was up, as were Xbox Live monthly active users.


Microsoft has announced the results of its most recent fiscal quarter, which ended on March 31, 2017, and provided a brief update on the state of its gaming business.

Xbox is part of Microsoft's More Personal Computing division, which saw its revenue decline 7% because of slow phone sales. However, Xbox itself did reasonably well--gaming revenue increased by 4% for the quarter, reaching $1.928 billion.

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Microsoft attributed this to "growth in Xbox Live," which saw its monthly active users across Xbox, PC, and mobile climb 13% to 52 million, up from 46 million during the same period a year ago. It's a decline from the previous quarter, when Xbox Live MAUs reached a record 55 million, but that's to be expected, given that period included the busy holiday season.

Revenue from Xbox software and services were up 7%, although a specific dollar figure was not shared. Microsoft said this was "driven by continued adoption of digital distribution and a strong game lineup." During a subsequent conference call, Microsoft stated, "Xbox Live revenue growth offset declines in hardware."

Overall, Microsoft saw revenue of $22.1 billion for the quarter, while net income was $4.8 billion. Its Productivity and Business Processes group saw revenue increase 22%, while Intelligent Cloud revenue grew 11%.

Microsoft will host a call with investors and analysts later today to discuss its earnings report. While these are routinely focused on non-gaming areas of the company, we'll report back if it has anything interesting to share.

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