Microsoft ups gaming revenues
October 28, 2021
Drilling down into Microsoft’s record results (overall net income of $20.5 billion, up 48 per cent) and looking at its gaming division reveals the software company delivered a very solid July to September quarter.
Gaming revenues were up 16 per cent with its hardware division sales sustained (+166 per cent year-on-year) driven by strong demand for Xbox Series X/S. Software and services revenues were slightly up given high comparable basis.
Equity analysts at Exane/BNPP say that Microsoft’s focus on content and services continues to pay off.
“Microsoft is entering new cycle in a strong position with the Xbox eco system. Hopefully production constraints will be solved quickly and the division will be able to deliver its full potential,” said the bank’s note to clients.
Microsoft’s guidance for this pre-Christmas quarter’s trading is encouraging (record revenue at c. $5.5 billion) but is supported by strong line up of first party titles (including Halo infinite and Forza Horizon) and the contribution from Bethesda acquisition