In the company’s latest earnings report released today, Microsoft noted increased gaming revenue and Xbox Live users for Q4 of the 2017 fiscal year.
Gaming revenue increased 3% to $1.66 billion, mostly driven by software sales and services which offset lower hardware earnings. This could be due to customers waiting for the release of Microsoft’s 4K-capable Xbox One X, dubbed a premium console for those interested in its enhancements, but is also attributed to lower prices of the Xbox One S that Microsoft currently offers and an increased number of purchases on Xbox Live.
Microsoft also revealed that the number of Xbox Live monthly active users jumped 8% to 53 million, signalling heightened enthusiasm for the service. With programs such as Xbox Play Anywhere, Xbox Game Pass, and Games with Gold, the Xbox ecosystem is more and more appealing to players.
On top of the Xbox One X launching this fall, a few exclusive AAA games will be releasing for it as well. Heavy-hitters like Crackdown 3 and the next entry in Turn 10’s popular Forza series are sure to get some attention, as well as the much-anticipated release of Cuphead in September. Touted as the best place to play third-party games on consoles, the Xbox One X will likely boost Microsoft’s revenue.
Overall, Microsoft reported $24.7 billion in earnings for FY17 Q4. While the company’s gaming sectors make up a small chunk of this, Xbox is still a profitable division.
