Microsoft “Investing Aggressively” in Gaming Content and Cloud Service

4.4

During Microsoft’s quarterly financial conference call for investors and analysts, Chief Operating Officer Satya Nadella and Chief Financial Officer Amy Hood talked about the current situation of the Xbox business.

Nadella underlined that this fiscal year Microsoft’s gaming business passed ten billion dollars in revenue for the first time, and mentioned that the company is aggressively investing in content, community, and cloud services for games.

“In gaming, we’re pursuing our expansive opportunity from the way games are created and distributed, to how they’re played and viewed, surpassing ten billion revenue this year for the first time. We’re investing aggressively in content, community, and cloud services across every end-point to expand usage and deepen engagement with gamers.

The combination of Xbox Live Game Pass subscription and Mixer are driving record levels of growth and engagement.”

Nadella also commented on requent acquisitions.

“PlayFab accelerates our vision to build a world-class cloud platform for the gaming industry across mobile, PC, and console. The addition of five new gaming studios bolsters our first-party content development to support our fast-growing gaming services.”

Hood talked about the outlook for the gaming business in the current fiscal quarter (between July 1st and September 30th, 2019). Microsoft expects revenue growth around 15%.

“In gaming, we expect mid-teens revenue growth, with continued strong user engagement on our platforms. The software and services growth rate will moderate due to a strong third-party title launch a year ago.”