Microsoft posts robust quarter results, bets big on gaming

After acquiring Call of Duty publisher Activision Blizzard for $68.7 billion, Microsoft has reported strong results for its quarter that ended December 31, with $51.7 billion in revenue (up 20 per cent) and $18.8 billion in net income (up 21 per cent).

Xbox hardware revenue rose 4 per cent while Xbox content and services revenue increased 10 per cent.

"We saw record engagement, as well as revenue this quarter. Game Pass has more than 25 million subscribers across PC and console," said Satya Nadella, chairman and chief executive officer of Microsoft.

"With our planned acquisition of Activision Blizzard announced last week, we are investing to make it easier for people to play great games wherever, whenever, and however they want, and also shape what comes next for gaming as platforms like the Metaverse develop," he added.

Driven by long-term Azure commitments, Microsoft Cloud revenue increased to $22.1 billion, up 32 per cent (on-year).

"Digital technology is the most malleable resource at the world's disposal to overcome constraints and reimagine everyday work and life," added Nadella who has been conferred Padma Bhushan, the third-highest civilian award in India, along with Alphabet and Google CEO Sundar Pichai.

Revenue in Productivity and Business Processes was $15.9 billion and increased 19 per cent, said the company.

Revenue in Intelligent Cloud was $18.3 billion and increased 26 per cent.

Microsoft logged $17.5 million revenue in the 'More Personal Computing' segment.

Nadella said the company generated $15 billion in security revenue in 2021, up nearly 45 per cent from the prior year.