Microsoft’s Q4 2016 Earnings: Xbox revenue decrease 33%, but Xbox Live engagement is up

Gears of War 4 XBox One S

In their FY16 Q4 results Microsoft reported that revenue from their gaming division decreased by $152 million or 9%, primarily due to lower Xbox hardware revenue, offset in part by higher revenue from Xbox Live.

Xbox hardware revenue decreased 33%, mainly due to a decline in consoles sold and lower prices of consoles sold. Xbox Live revenue however increased 4%, driven by higher volume of transactions and revenue per transaction.

Xbox Live users increased to 49 million users in FY Q4 2016, up from 37 million a year earlier and 46 million in the earlier quarter.

Microsoft noted that hours gaming increased 19% on Windows 10, which is of course amazing news on the massive platform.  Time spent gaming on XBox also increased 13%

The introduction of the Xbox One S should provide a boost to Xbox hardware revenue in the next quarter, though with Project Scorpio pre-announced this may not provide as much as a boost as expected. If Microsoft is however able to maintain momentum on Windows 10 desktop and secure the Windows Store as a distribution network for triple A titles it may not matter at all how many Xbox One S’s are sold in the end.

Some links in the article may not be viewable as you are using an AdBlocker. Please add us to your whitelist to enable the website to function properly.

Source Related
Comments