Microsoft has announced the financial results for the third quarter of the fiscal year 2018. A bright spot: the Xbox One. Gaming revenue is said to have increased by 18 percent. This is primarily due to strong Xbox software and the Xbox service. Therefore, particular attention should be paid to Xbox Live and other services.
As Microsoft announced in the financial results for the third quarter of the fiscal year 2018, gaming revenue increased by 18 percent in the third business quarter. This is attributed to a growth in Xbox software and Xbox services, which grew by 24 percent. Here, the company particularly points to the strong performance of third-party games.
The monthly active users of Xbox Live increased by 13 percent year-over-year to 59 million players, while the number remained essentially unchanged compared to the last quarter.
Xbox One the console with the “highest engagement”
Chief Executive Officer Satya Nadella stated at the presentation of the financial results that Microsoft has a strategy for the gaming segment that aims to clarify growth opportunities and investments across various business areas.
It plays to the company’s advantage that the Xbox One is the “console with the highest engagement on the market.” With Xbox Live, Game Pass, and Mixer, the company has additional opportunities to benefit gamers while playing or watching games.
Departure from the original strategy?
It sounds as if Microsoft has completely abandoned the original plan for the console.
The Xbox One was initially planned as an entertainment device. The console was supposed to shine mainly with its multimedia capabilities and social components. Gaming was almost pushed to the background.
However, after significant criticism and poor reviews, a rethinking took place, such as the plans for the used game lock, possible user monitoring via Kinect, and a proposed online requirement within a 24-hour interval. Especially the jabs from competitors likely bothered Microsoft at that time.
Microsoft does not provide current sales figures for the Xbox One. According to a study by the market research institute Nielsen from February 2015, most buyers of an Xbox One were already owners of a previous generation Microsoft console.
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