Microsoft's gaming business is certainly successful, but it's widely known that a key edge that rival game console maker Sony has over Microsoft is that the former's PlayStation 4 platform has a greater number of compelling exclusive titles than Microsoft does on its Xbox platform. This is extremely important because the greater the number of compelling exclusive games that exist on a particular gaming platform, the more likely it is that platform will succeed. The executive said that the company "acquired two new studios this quarter, bringing the total to 13 and more than doubling our first-party content capacity in the past six months." On Microsoft's most recent earnings call, CEO Satya Nadella provided some additional insight into its efforts in gaming. So not only is gaming a significant part of Microsoft's business, it's growing in importance. Gaming made up 11.3% of the company's revenue during that period, growing a bit from 10.9% in the same period a year ago. While the company's fiscal 2019 isn't over yet, it's worth noting that during the first six months of that year, Microsoft's gaming revenue reached $6.97 billion, growing 20% from the first six months of fiscal 2018.
Gaming is both a meaningful part of the company's more personal computing segment as well as its overall revenue.
#Microsoft games division software#
Putting that into perspective, Microsoft's total revenue in fiscal 2018 was $110.36 billion, so gaming made up a little more than 10% of the software giant's net revenue that year. In the company's most recent 10-K filing, Microsoft said that its gaming revenue during fiscal year 2018 "increased $1.3 billion or 14%." With a simple calculation, we can determine that Microsoft's gaming revenue was about $9.3 billion in fiscal 2017, meaning that its fiscal 2018 gaming revenue was about $10.6 billion. “Microsoft has opened two studios in the Vancouver/Victoria region this year and now there is investment in Black Tusk here in Vancouver, so there is a deep commitment to Vancouver and a belief in the potential of this region, what it can be in this space.Put simply, if it's related to Xbox, it goes under the company's gaming business. “But Microsoft’s commitment to Vancouver goes way beyond tax credits. “Tax credits, for sure, are a challenge here in Vancouver,” said Crump. While Crump said he can’t comment on what other companies in the sector are doing, he noted that Microsoft has all its Canadian gaming studios in B.C. Named for the iconic pinnacle between Vancouver and Whistler that attracts hikers, the studio is opening at a time when several video game companies have headed east to take advantage of more favourable tax credits in Toronto. “And the last piece of it is - the reason we really believe in Vancouver is it’s such a great place to live that when we are going out and we’re recruiting, whether it’s California or Frankfurt, it is never a tough sell to convince somebody to move to Vancouver.” “First and foremost is its heritage, there is a history of gaming in Vancouver that goes back decades and what that has left us with is a pool of talent that is really unparalleled, I think, most anywhere in the world,” said Crump.
#Microsoft games division full#
“That’s the way game development works - it’s just like making a movie, you go through pitching and concepting and then at some point you have a very large meeting with the executive team and present your full pitch with the business plan and you get the green light, so that’s happened for us.” Crump said Vancouver’s proximity to Microsoft’s Redmond, Washington, headquarters is a factor but it is not the only attraction.
“We have been officially green-lit by Microsoft executives to go ahead with the project that we’re on,” he said. Article contentĬrump said the Black Tusk group wanted to operate in stealth mode until it recruited enough talent to reach critical mass and got the go-ahead from Microsoft head office. This advertisement has not loaded yet, but your article continues below. Vancouver Sun Run: Sign up & event info.