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Xbox revenue on the rise in Microsoft FY19 Q3 earnings

Xbox @ E3
Xbox @ E3 (Image credit: Windows Central)

Microsoft has posted its quarterly earnings for FY19 Q3, highlighting continued company-wide growth for the Redmond giant. While continued cloud success saw revenue jump 41 percent year-over-year, the report also outlined an upswing in consumer-facing investments, including Windows, Surface, and its gaming ventures.

Outlined via Microsoft's FY19 Q3 earnings on April 24, gaming revenue continues to climb, seeing five percent growth against its third-quarter 2018 earnings. Xbox software and services income also scaled 12 percent, outlining "third-party title monetization and subscriptions" as critical factors in the gains. Hardware revenue fell in contrast, although faces off against the months tailing the Xbox One X's November 2017 debut.

Microsoft's Xbox Live gaming network also saw an uptick in year-over-year demand, increasing seven percent to 63 million active users. This conversely indicates a drop compared to last quarter, earlier rising to 64 million active users.

Xbox One and Microsoft's other gaming efforts continue to show promise, with further investments made across the Xbox portfolio. With the upcoming "Scarlett" Xbox console generation, a growing lineup of in-house Xbox studios, and increased PC investments, the future looks bright for its gaming offerings.

Microsoft will conduct a conference call and webcast to provide further insight into this quarter's numbers, along with a look forward, at 2:30 p.m. PT (5:30 p.m. ET). You can follow along at Microsoft's investor site (opens in new tab).

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Matt Brown is Windows Central's Senior Games Editor, Xbox & PC, at Future. Following over seven years of professional consumer technology and gaming coverage, he’s focused on the world of Microsoft's gaming efforts. You can follow him on Twitter @mattjbrown.

7 Comments
  • Please note. This is revenue not profit.
    Note for all those who will say XB is very profitable in the future...
  • True, and the term "very profitable" is also relative. I'm sure Xbox is making enough money considering that it has been elevated and not cut like other portions.
  • I don't think XBox was ever profitable. I think the money they are investing in the last few years is a bit of a gamble because they believe in their vision of services.
  • I can't argue for or against on that since I don't know the numbers or care to try to read fiscal reports to know. I would fully believe that there has been at least SOME times of profit along with the times of losses.
  • The thing is that MS never actually communicates on XB numbers unless it's actually positive.
    This is actually about this:
    https://www.cgmagonline.com/2017/08/14/microsofts-xbox-never-profitable-... This was written in 2017. In between that and now they invested a lot on new studios so they probably didn't make profits during this time.
  • It's highly unlikely the consoles themselves are profitable, outside of Nintendo no one makes money on console hardware, but with the increase in services there is definitely money being made. It is really frustrating that companies never talk in profits, only revenue, and that's simply because bigger numbers are always better and that's how they can show bigger numbers. That and it's a lot harder to avoid taxes if you are making ridiculous profits.
  • Err Sony and Nintendo actually publish all these numbers.
    Sony publish their profits:
    https://www.engadget.com/2019/02/01/sony-playstation-4-profit/ The number of PS+ subscribers:
    http://www.pushsquare.com/news/2019/02/there_are_36_3_million_playstatio... And even PSNow subscribers:
    https://www.gamasutra.com/view/news/341579/PlayStation_Now_has_700000_su... Here you have the financial reports.
    https://www.sony.net/SonyInfo/IR/library/presen/er/archive.html Ninendo also communicates on profit:
    https://techcrunch.com/2019/01/31/nintendo-posts-958m-profit/ Actually it's only MS that don't want to share their numbers and only talk of numbers that makes them look good. I mean yes they'll increase Switch, Android or IOS minecraft players in the active Live users just to make their numbers look good but they'll never actually talk real numbers. Profit/loss, gold or Game pass members.
    XB's financial report just looks like PR statements...