Microsoft’s gaming business drops 7% in revenue this quarter – Fortnite isn’t boosting revenue, next generation approaching

With every quarter that passes Microsoft seems to report less and less about the gaming division at Microsoft. This quarter is the first one in a long time where we won’t get the monthly active Xbox Live users. We do get the revenue growth (or drop) and information on services, content and hardware. Here are the details.

Services and content

Fortnite isn’t performing as well as it has. The end of an era? Unlikely. But it’s obvious the most popular game of the past few years isn’t boosting revenue like it used to. Meanwhile Microsoft does mention Minecraft in their quarterly reports. It seems Minecraft’s resurgence is having an effect. According to Satya Nadella Minecraft had a record quarter.

Xbox content and services revenue was nearly unchanged (1% growth). That’s not enough to offset the drop in revenue in the total gaming division, which is seven percent.

Sheet about More Personal Computing from the shareholders presentation. – Microsoft

New hardware is coming

Hardware revenue this quarter was down 34%. It’s obvious that the Xbox One is nearing the end. From now on it’ll be a long 12 month wait to Xbox Scarlett.

Overall Microsoft had a decent quarter. Revenue from cloud services and Office keeps on growing. All three business groups (Productivity and business processes (LinkedIn, Office commerical, Dynamics), Intelligent Cloud (Azure, enterprise services) and Personal Computing (Surface, Windows and Xbox) are all performing equal in regards to revenue. With each business bringing in around 11 billion dollars in revenue this quarter.

You can read the full report here.

Pieter "SuikerBrood" Jasper

29 year old gamer who grew up with Commander Keen and Jazz Jackrabbit. A PC Gamer. (Sorry, not sorry). Dutch, but actually Frisian. Loves Age of Empires, Sea of Thieves and wishes for a new Viva Piñata.

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