Microsoft’s first quarter financial results are in and while Xbox had received impressive growth last quarter with a 27% increase in revenue growth, in the report for this quarter, any mention of revenue earned from Xbox is completely absent.
There is mention of a significant increase in active Xbox Live users however, which grew 28% to 39 million this quarter, but this increase isn’t necessarily due to an increase in Xbox One or Xbox 360 console usage. With the launch of Windows 10, Microsoft significantly increased the presence of Xbox Live in the operating system with their revamped Xbox app and several Xbox Live-enabled titles, such as Microsoft’s Solitaire, which were being played for the first time by the numerous Windows 7 users who upgraded to Windows 10.
With over 110 million Windows 10 installations, it’s safe to assume that the new operating system accounts for a fair share of the increase in Xbox Live users. This doesn’t mean sales of the Xbox One are terrible though. In fact, Microsoft recently stated that the console is seeing year-over-year growth and with big titles such as Halo 5 and Rise of the Tomb Raider around the corner and the recent addition of backwards compatibility for numerous Xbox 360 titles, it’s hardly going to be a system that gamers will be shying away from throughout 2015 and 2016.
Microsoft’s other hardware, such as Windows 10 Mobile and Surface, didn’t do so well though and saw a 45% decline in sales during the quarter but things seem to be already turning around with the high demand for the recently announced Surface Pro 4 and Surface Book devices since their reveal. Microsoft’s Intelligent Cloud business grew 8% to $5.9 billion in revenue in the same quarter though, which is hard to interpret as anything but positive.
What are your thoughts on this latest financial report? Do you think Windows 10 was the cause for the increase in Xbox Live active users or do you feel the Xbox One has become a stronger console recently due to all the new titles and features introduced recently? Share your thoughts with us in the comments below.