Another three months have passed, which means a new earnings call for Microsoft. In the past three months, which ended December 31, 2021 Microsoft had a revenue of 51.7 billion dollars, with a net income of 18.8 billion dollars.
Gaming & Windows
Xbox revenue growth in line with expectations, mostly due to better than expected console supplies. During the earnings call Chief Financial Officer Amy Hood mentioned supply constraints will continue in the next quarter.
Software and services – for which revenue increased 10 percent last quarter – performed lower than expected. First party and services performed well, which was partially offset by weaker revenue from third party titles. During the earnings call Microsoft announced Halo Infinite has been played by 20 million people, while Forza Horizon 5 has been played by 18 million people.
For the next quarter Microsoft is expecting a single digit revenue growth for Xbox. Obviously this doesn’t include the Activision Blizzard deal, which isn’t expected to close soon.
Meanwhile the PC market is doing very well, due to the pandemic demand has been up, while supply constraints are also visible in this market.