Microsoft Q3 FY18 Earnings: Gaming revenue increases 18% driven by Xbox software and services

April 26, 2018

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Microsoft has released its Q3 FY18 earnings report today and the company’s gaming revenue continues to be strong. Though it’s less than last quarter due to the timeframe of Q2 falling during the holiday season, Xbox’s revenue still grew year-over-year.

Microsoft hasn’t revealed the total number of Xbox consoles sold in years now, but the company has increasingly focused on engagement over Xbox Live and through its many services. In that regard, Xbox Live monthly active users grew 13% YoY to 59 million, consistent with last quarter. Gaming revenue reached $2.25 billion, growing 18% YoY.  This was “driven by Xbox software and services revenue growth of 24% (up 21% in constant currency) mainly from third party title strength.”

Those interested in last quarter’s results can view them here. In comparison, Microsoft’s gaming revenue hit $3.92 billion during Q2 thanks to the release of the Xbox One X, which helped bump up the company’s hardware numbers by 14% at the time.

Xbox didn’t see too many heavy-hitting exclusives launch this quarter aside from Sea of Thieves, which could have contributed to Xbox’s gaming revenue growth as well. Sea of Thieves became the fastest-selling first-party new IP this generation for Xbox without even counting those sailing the high seas using Xbox Game Pass. As of late March, just a week after its launch, the game passed 2 million players.

You can read the full report for Q3 FY18 here.

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