Microsoft achieves an annual business turnover of $ 10 billion, so what is the next step?

Microsoft announced a $ 110 billion business figure in 2018, the company announced Wednesday. This is the first time Microsoft has exceeded $ 100 billion in annual business turnover.

Buried in the profit report is another first: the game activity of Microsoft has generated an annual income of just over $ 10 billion. The company says it's the first time that its gaming activity has crossed this threshold.

During the last quarter of its fiscal year, Microsoft's gaming activity grew 39% over the same period in 2017, thanks to higher revenue from Xbox software and services.

At this point, Xbox software and services alone are up 36% over the same period, "primarily from a third-party title," said Amy CFO, a Microsoft CAD / CAM. While Hood did not specify which particular game resulted in such material growth, the most likely suspect is "Fortnite", the international phenomenon.

That does not tell the whole story, though. Over the past year, Microsoft has renewed its desire to take up gambling beyond hardware and software sales and switch to services. At the same time, he promoted Xbox's boss, Phil Spencer, to the new role of executive VP of Gaming, to give him more room for this push.

Pass, Mixer and Live: A Powerful Mix of New Services

The most obvious example is the Xbox Game Pass, a $ 10 / month service that gives unlimited access to hundreds of Xbox games One. Game Pass was launched in June 2017, and Microsoft has continued to argue – even pledging to bring first-class blockbuster like the next "Forza Horizon 4" the day they arrive on the shelves. stores.

Another newcomer is Mixer, Microsoft's response to the massive success of Amazon's Twitch. While Mixer is not as popular among video game streamers as his rivals, he has earned a loyal community. Microsoft said Mixer is a major push as it works to reach players on iPhone and Android.

To this end, Microsoft continues its investment in Xbox Live, its online gaming service. It had 57 million active users during the quarter, Microsoft reported. This is up from $ 53 million in the same period of 2017, but slightly less than the $ 59 million recorded in the previous quarter. It's free to join Xbox Live, but there's an Xbox Live Gold subscription at $ 60 / year with premium features, including the ability to play online multiplayer games.

Microsoft CEO Satya Nadella has focused on combining Game Pass, Mixer and Xbox Live to "drive record levels of growth and engagement." In other words, as much as the Xbox business is still strong, it is these less traditional areas of intervention where Microsoft is placing its hopes. And with a year of $ 10 billion for the very first time, we can only expect Microsoft to dig.

Finally, to put things in context: Microsoft no longer publishes sales figures Xbox One, but it is generally accepted to be the second place of the Sony PlayStation 4 by a country mile. While Microsoft has just launched a new Xbox One X console last year, and says it's already working on new hardware, it's clear that the company is covering its bets.