In the most recent financial earnings report for the period ending on December 31, 2020, Microsoft shared that revenue increased by 17% to reach $43.1 billion and $15 billion in profit.
As per the case for the last several quarters, profits were driven by Microsoft’s cloud platform, but that doesn’t mean there weren’t other successful ventures.
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Hardware saw the biggest growth thanks to the launch of the Xbox Series X|S. Microsoft says the gaming hardware segment grew 86% thanks to the new hardware, though the company hasn’t shared exact numbers.
Meanwhile, Microsoft reported that revenue has grown 51% overall in games, with Xbox content and services revenue up 40%. The growth has been attributed to third-party titles, Xbox Game Pass subscriptions, and first-party titles.
According to Microsoft CEO Satya Nadella during the conference call, Xbox Game Pass now has 18 million subscribers. The numbers also don’t take into account Microsoft’s Zenimax acquisition, which it says is expected to close later this year.
News of Microsoft’s successful quarter has pushed up Microsoft stock. The success of the company is of course based on a broad array of product and offerings, not just gaming. Microsoft’s line encompasses software, apps, home computers, and more; while the R&D department dabbles in projects like putting servers underwater.
Matt T.M. Kim is a reporter for IGN. You can reach him @lawoftd on Twitter.