• Loading stock data...
Sunday, June 16, 2024

Microsoft CEO: Gaming ‘Resilient’ During Economic Uncertainty

  • Microsoft posted $50.1 billion in revenue in fiscal Q1, an 11% increase year-over-year.
  • Its Xbox content and services business saw revenue decrease by 3% during the quarter.

Video games have become a bright spot for Microsoft amid challenges within the tech industry. 

“It’s proven over years, at times of economic uncertainty for families, gaming is somewhat resilient to those issues,” Microsoft Gaming CEO Phil Spencer said

Microsoft proved itself in 2008 during the global financial crisis when it recorded its Best Calendar Year on record for Xbox sales after it cut prices to compete with Nintendo’s Wii.

Microsoft’s latest earnings report backs up Spencer’s statement. 

  • Microsoft posted $50.1 billion in revenue in fiscal Q1, an 11% increase year-over-year.
  • Its Xbox content and services business saw revenue decrease by 3% during the quarter.
  • Microsoft offers its latest generation of consoles for $499 (Xbox Series X) and $299 (Series S).
  • It subsidizes the cost of the consoles from $100 to $200 per unit. 

The gaming industry took a step back in the first half of this financial year following a surge of interest and spending at the height of the pandemic, mostly due to the ongoing chip shortage and supply chain disruptions. 

Road Block

In January, Microsoft announced plans to acquire Activision Blizzard for $68.7 billion, making the tech giant the world’s third-largest gaming company by revenue. 

The all-cash deal has been investigated by the Competition and Markets Authority — a U.K. antitrust watchdog. The CMA detailed concerns over the deal harming Sony’s PlayStation subscription offerings and the streaming business of rivals Google, Amazon, and Nvidia.

As a result, the deal was not initially approved by the CMA and has been sent to a second review stage.

Copy Link
Link Copied
Link Copied

What to Read

General view of the stadium during the game between the LSU Tigers and the Wake Forest Demon Deacons at Charles Schwab Field Omaha. Mandatory Credit: Steven Branscombe-USA TODAY Sports

College World Series: Record Crowds and TV Viewership Anticipated

The eight-team bracket has four schools each from the ACC and SEC.

Rays Nearing $1.3B Stadium Deal, Clear Path to St. Pete Commitment

The St. Petersburg city council gives preliminary approval to the Rays’ $1.3 billion stadium project.

The ‘Big’ in Big 12 Could Soon Be Replaced With a Sponsor’s Name

Allstate is said to be in discussions about a deal with the Big 12.

Wimbledon’s Record $64M Prize Pool Spurs Tennis-Wide Pay Increase

The oldest of the tennis Grand Slams raises its prize fund to a record $64 million.
podcast thumbnail mobile
Front Office Sports Today

How the US Open is Designed for Drama


Featured Today

Jan 3, 2022; Pittsburgh, Pennsylvania, USA; General view of the NFL shield logo signage before the Pittsburgh Steelers host the Cleveland Browns at Heinz Field.

Odds Stacked Against NFL in Multibillion-Dollar Sunday Ticket Trial

Why the class action trial does not look promising for the league.
Jan 7, 2024; San Francisco, California, USA; Toronto Raptors forward Jontay Porter (11) takes a three-point shot against the Golden State Warriors during the second half at Chase Center.
June 9, 2024

‘Bound to Happen’: The Age of the Sports Betting Scandal Has Arrived

A banishment, betting scheme, and guilty plea all in one scandal-filled span.
June 8, 2024

‘Experimental in Nature’: The Rapid, Confounding Rise of Streaming Bundles

Here’s why confusion continues to outweigh solutions in the streaming package boom.
June 2, 2024

The Nostalgia Market: Michael Jordan’s Memorabilia Remains Coveted, With Caveats

Due to scarcity, and sometimes, items’ undisclosed whereabouts, this world has limitations.

IOC Proposes Holding Separate Olympics for Esports

The organization’s executive board has proposed a separate Olympics for online gaming.
February 29, 2024

Electronic Arts’ Layoffs Signal Ongoing Evolution, Struggles

The company is set to make a second major round of staff cuts in the last year.

How Daily Fantasy Sports Solved NBA Fantasy

The remarkable growth of the #1 Discord sports server in the world.

How HOKA is Reimagining the NIL Relationship

HOKA, the renowned athletic footwear and apparel brand, is betting on a new reality with NIL.
Oct 5, 2021; Kansas City, Missouri, USA; Bob Kendrick, president of the Negro Leagues Baseball Museum in Kansas City, points to the lettering outside of the museum Tuesday.
February 28, 2024

How Do You Keep Negro Leagues Baseball History Alive? Put It in a Video Game

Negro Leagues Baseball Museum attracting increased donations, visits from ‘MLB The Show.’
February 27, 2024

Sony to Lay Off 900 From PlayStation Team After Missed Sales Target

Cuts come amid a tough stretch for the gaming industry.
EA Sports
February 15, 2024

EA Sports: Summer Release for Long-Dormant College Football Video Game

Ed O’Bannon’s historic lawsuit led to the shuttering of EA Sports’ popular college games.
February 14, 2024

Was the Gatorade Color Compromised Before Super Bowl LVIII Kickoff?

Multiple gambling companies saw a sharp spike in the color purple prior to Sunday’s kickoff.