Microsoft’s gaming revenue declines 7% in June 30 quarter



Interested in learning what’s next for the gaming industry? Join gaming executives to discuss emerging parts of the industry this October at GamesBeat Summit Next. Register today.

Microsoft revealed in its earnings report today that its gaming revenue declined 7% (5% in constant currency) in the fourth fiscal quarter ended June 30, compared to a year ago.

Xbox content and service revenue declined 6% (4% in constant currency), driven by lower engagement hours and monetization in third-party and first-party content. It was partially offset by growth in Xbox Game Pass subscriptions.

And Microsoft said that Xbox hardware revenue declined 11% (down 8% in constant currency). The overall division that includes gaming saw its operating income slip in the June quarter from $4.8 billion a year ago to $4.6 billion in the most recent quarter, but revenues grew from $14.1 billion a year ago to $14.3 billion.

The More Personal Computing division includes gaming, including Xbox hardware and Xbox content and services, Xbox Game Pass and other subscriptions, video games, third-party video game royalties, cloud services and advertising.

Microsoft chief financial officer Amy Hood said in an analyst call that the results do not include anything from Activision Blizzard, which Microsoft is in the process of buying for $68.5 billion. She said she still expects that deal to close in the current fiscal year. Hood said gaming revenue was in line with expectations.

Revenue for the More Personal Computing division is expected to grow 1% to 4% in constant currency, or $13 billion to $13.4 billion. Gaming is expected to decline in the low-to-mid single digits, driven by a decline in first-party title launches. That will be offset by growth in Xbox Game Pass, Hood said.

GamesBeat’s creed when covering the game industry is “where passion meets business.” What does this mean? We want to tell you how the news matters to you — not just as a decision-maker at a game studio, but also as a fan of games. Whether you read our articles, listen to our podcasts, or watch our videos, GamesBeat will help you learn about the industry and enjoy engaging with it. Learn more about membership.

Read original article here

Denial of responsibility! Genx Newz is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.
Leave A Reply

Your email address will not be published.