Microsoft boasted strong earnings for the fiscal quarter ending Dec. 31, 2021, as its mega-acquisition in gaming looms.
The tech giant posted revenue of $51.7 billion, up 20% year-over-year. Net income climbed similarly, up 21% from last year to $18.8 billion.
While supply chain issues slowed Xbox sales, the company still showed gains in gaming.
- Xbox console sales rose 4% from the same period last year, when supply of the devices was also quite limited.
- Xbox content and services revenue jumped 10% year-over-year.
- Revenue for Microsoft’s entire More Personal Computing segment, which includes its gaming, Surface hardware, and search products, grew 15% to $17.5 billion.
The earnings provide a further lift to Microsoft after it agreed to acquire gaming giant Activision Blizzard in a $68.7 billion, all-cash deal. Microsoft ended 2021 with $125.4 billion in cash, cash equivalents, and short-term investments.
Microsoft Gaming CEO Phil Spencer assuaged gamer concerns last week when he said that the company would honor previous agreements made by Activision Blizzard and make the next three “Call of Duty” games available on Sony PlayStation as well as Xbox.
Microsoft, however, is not obligated to continue working with its gaming rival on the hugely popular game series beyond Activision Blizzard’s existing deals.