Nadella began the telephone by mentioning Xbox is reaching new customers with new offerings. He explained that the Xbox One X has been an top-selling premium console in the Holiday season at the USA (meaning that Microsoft’s fresh console conquer the PS4 Pro), paired with “strong sales” of the Xbox One S. He also pledged that Microsoft will probably “continue to innovate consoles to attract high-value gamers” who want immersive 4K experiences, to create a wider subscription service with Game Pass and also to extend its own gambling solutions to all devices in the clients’ lives throughout the console, PC, and cellular.
He continued explaining that the choice to release exclusive content about Game Pass concurrently with international release increases the value of their subscription for both members and industry partners, and the service is off to “a very great start. ”
He also said the recent purchase of PlayFab, that serves more than 700 million gamers playing over 1,200 games.
Hood then discussed the prognosis for the current quarter, mentioning the prediction between 9.1 and 9.4 billion dollars of earnings for the entire “ More Personal Computing” segment which includes gambling. Especially in the gaming section, Microsoft expects growth similar to the previous quarter, but with a revenue mix shift towards applications and services rather than hardware. The business also forecasts to enjoy continued year-on-year development of the Xbox Live userbase.
Interestingly, an analyst said to Nadella “murmurings” about the Xbox One decreasing behind PS4 in terms of earnings and distinctive games, asking about the way he feels about Microsoft’s position in gambling. Nadella replied that Microsoft “feels good” about Xbox One X and also the sales quantity of Xbox One S, using a “halo impact” of this console forcing the lower-end console too. He added that the real strategy going forward is not just to do “good work” on consoles but also to match that with great work on PC.
According to Nadella PC gaming is an increase opportunity so Microsoft is there using its subscription offer, and with streaming that’s bringing PC and console closer together, and on different devices like mobile with Minecraft.
Overall we’ll see Microsoft do great work on consoles and rival in that market, but what’s more, they have a much wider gaming view in terms of the value they could add with subscription services and streaming services across all of the devices.
In addition to that, gambling is a growth area for Azure also, and on account of the current acquisition, enhanced services on the cloud are going to bring in more programmers.
If you wish to read about Microsoft and Xbox’s results during the past fiscal quarter, then you can have a look at our dedicated article.