Microsoft has summarized its fourth-quarter earnings for its fiscal year 2020, with company-wide revenue once again on the rise, exceeding $ 38 billion. The gaming efforts were among the outstanding successes, with current world events helping to drive revenue 64 percent year-over-year, or $ 1.3 billion.
COVID-19 put Xbox in the spotlight, as Redmond once again reports “record engagement” in an era of stay-at-home orders and social estrangement. Xbox content and services grew 65 percent year-over-year ($ 1.2 billion), including game and subscription sales. Microsoft attributed that growth to increased overall demand for the platform, along with strong results from unnamed third-party properties.
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Growth extends to Xbox hardware revenue, also up 49 percent this quarter. Xbox One X and Xbox One S packs remain in short supply across the country as consumers flock to home entertainment. It occurs when Microsoft recently halted the all-digital production of Xbox One X and Xbox One S, discontinuing existing models before the next-generation Xbox Series X.
The results mark an impressive quarter for Microsoft’s gaming division, once again strong during the pandemic. The last few weeks of the last quarter showed a sharp increase in Xbox Live usage, with similar momentum reflected in fourth quarter earnings. The surge in demand even saw Microsoft temporarily disable Xbox custom profile pictures to ease the pressure on moderation services.
It favorably positions Microsoft to execute on its next-generation vision, led by its Xbox Series X console and Project xCloud cloud streaming technology. The current climate fuels a growing demand for interactive entertainment, with sales of software and services such as your Xbox Game Pass subscription, essential for the brand to advance.
