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Microsoft FY19 Q2 - Gaming Rev. up 8% YoY, Xbox Live MAU at 64m

ZhugeEX

ZhugeEX

Senior Analyst at Niko Partners
Verified
Oct 24, 2017
3,099
Microsoft Corp. today announced the following results for the quarter ended December 31, 2018, as compared to the corresponding period of last fiscal year:

Overall -
  • Revenue was $32.5 billion and increased 12%
  • Operating income was $10.3 billion and increased 18%
  • Net income was $8.4 billion GAAP and $8.6 billion non-GAAP

Gaming-

Gaming revenue increased 8% (up 9% in constant currency).
Total gaming revenue was $4.23 billion, up 8% YoY.
Xbox software and services revenue was up 31% YoY, driven primarily by third party title strength.
Xbox hardware revenue was down 19% YoY due to a tough comp vs Xbox One X launch last year
Xbox Live Monthly Active users are up 8% YoY to 64 million. (Includes Gold and Silver members across Xbox, Windows 10 and Smartphones).

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https://www.microsoft.com/en-us/Investor/earnings/FY-2019-Q2/press-release-webcast
https://view.officeapps.live.com/op...?version=3ebd5724-1092-91fe-97d5-3a8bee77dfc7
 
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night814

night814

One Winged Slayer
Member
Oct 29, 2017
15,040
Pennsylvania
It can't be discounted how great it is to see everybody killing it right now. MS has had to fight tooth and nail after their awful start this gen and has done well in that regard I believe. Bless gamepass!
 
ArmGunar

ArmGunar

PlayStatistician
Member
Oct 30, 2017
6,527
Glad MS did well in Gaming

With Nintendo and Sony, all major constructor are healthy, that's cool
 
Toni

Toni

Banned
Nov 13, 2017
1,983
Orlando, Florida
Azure keeps thriving monumentally and adding in quite the amount of profit to the billions pool Microsoft earns every fiscal year.

4 billion for just the Xbox video game division despite low install base of the console + being down for the quarter is astonishing. Software services are driving the console forward and Xbox Live remains as profitable as ever.

Phil should be exiting this generation of consoles content as fuck with profit / revenue numbers like that.
 
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Theorry

Theorry

Member
Oct 27, 2017
61,028
I
night814 said:
It can't be discounted how great it is to see everybody killing it right now. MS has had to fight tooth and nail after their awful start this gen and has done well in that regard I believe. Bless gamepass!
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MS as a whole is doing great now. Nadella his vision really paid off. Lucky for us is that Xbox is part of this huge growth and is along for the ride and makes its position within MS only stronger.
 
OG_Thrills

OG_Thrills

Banned
Oct 27, 2017
4,655
.Hardware revenue decline of 19%
.31% increase in software driven from a software title

Interesting things to note.
 
OneBadMutha

OneBadMutha

Member
Nov 2, 2017
6,059
Microsoft is no longer the Windows company. It's the Azure/cloud business company. Fact that Spencer was able to tie gaming to the cloud business is why the investment in gaming has gone up exponentially.

The increase in Xbox Live revenue is quite a surprise. I see Xbox Live holding back their platform agnostic approach so I wonder how they'll blend it into Game Pass in the future.
 
CaviarMeths

CaviarMeths

Avenger
Oct 25, 2017
10,655
Western Canada
Hardware down, expected, and software and services up. Good year for Microsoft.

Wow at that Azure growth.

Surface showing impressive growth too. Driven by Surface Go launch?
 
Wandu

Wandu

Member
Oct 27, 2017
2,163
PopcornMegaphone said:
Azure is crazy. When is it going to pass AWS?
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According to an analyst, no time soon as it is far behind AWS and does not give any other numbers for Azure other than revenue being flat, but grew 76%. Whatever that means.

I completely forgot about Fortnite and thought RDR2 was gonna be that third party title to drive the software revenue. I am still curious to see what gamepass is doing for the revenue.
 
Martinski

Martinski

Member
Jan 15, 2019
8,424
Göteborg
Thought hardware sales were up this year. They were saying on Giantbomb podcast that Xbox one sales in 2018 were the best so far.
 
DopeyFish

DopeyFish

Member
Oct 25, 2017
10,796
Wandu said:
According to an analyst, no time soon as it is far behind AWS and does not give any other numbers for Azure other than revenue being flat, but grew 76%. Whatever that means.

I completely forgot about Fortnite and thought RDR2 was gonna be that third party title to drive the software revenue. I am still curious to see what gamepass is doing for the revenue.
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my question is does Amazon split up their cloud compute revenue (on earnings)? that's the important part and what Azure is all about.

if no, there's really no point comparing them, tbh.
 
Kolx

Kolx

Member
Oct 25, 2017
8,505
Great results considering the situation Xbox was in at the start of this gen. 11.5 billion in one year is fucking a lot.
 
pswii60

pswii60

Member
Oct 27, 2017
26,673
The Milky Way
Wandu said:
According to an analyst, no time soon as it is far behind AWS and does not give any other numbers for Azure other than revenue being flat, but grew 76%. Whatever that means.

I completely forgot about Fortnite and thought RDR2 was gonna be that third party title to drive the software revenue. I am still curious to see what gamepass is doing for the revenue.
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SloMoBackSlap said:
I'm not sure it will, Amazon has the most implemented cloud service that the US Govt uses.
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Confused..

https://www.forbes.com/sites/bobevans1/2018/10/29/1-microsoft-beats-amazon-in-12-month-cloud-revenue-26-7-billion-to-23-4-billion-ibm-third/#5397cf142bf1
Microsoft's booming $8.5-billion in cloud revenue last quarter has helped it open a decisive lead over Amazon as the world's leading enterprise cloud provider for the past 12 months, $26.7 billion to $23.4$ billion.
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So this article is incorrect? Is it how they work out the numbers?
 
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