Microsoft Corporation’s 2018 fourth quarter result implicitly highlights a major trend – it is steadily growing in the gaming business. Announced on Thursday, the company’s Gaming Revenue grew to $643 million or 39 percent up in 2018 Q4 against the corresponding duration previous year.

Xbox software and services made the key contribution to the higher revenues in the Microsoft gaming business, cites the released statement. Crediting the success to third-party title strength (probably whispering ‘Fortnite’), Xbox software and services earnings soared 36 percent.

Besides this, Microsoft Revenue grew to $30.1 billion in its fourth quarter of 2018, an increase of 17 percent when compared to three months ended on June 30, 2017. At the same, the Revenue under More Personal Computing comprising of Windows OEM and Commercials, Gaming, Surface and Search Advertising reached $10.8 billion, an addition of $1.6 billion or 17 percent up from the last year’s Q4 earnings.

Correspondingly, the Bill Gates’ company worth 802.13 billion market capitalization, interestingly, has crossed the threshold of 100 billion revenue for the very first time. It posted $110.4 billion Revenue in the 2018 fiscal year, a 14 percent boost from 2017 annual result.

Microsoft Gaming Business

This year’s annual gaming business statistic under the personal computer segment portrays a promising picture for Microsoft.

Leveraging the popularity of video gaming, Microsoft has laid a plan to reach two billion gamers by 2020. In fact, when Phil Spencer was promoted to Executive Vice President earlier this year, directly reporting to Satya Nadella, Microsoft CEO, the first question he was asked about how to grow gaming all across Microsoft.

Though Sony’s PlayStation continues to enjoy the leading position in the video gaming industry, its individualistic attitude seems to turn the waves against this year. Seizing the opportunity, Microsoft has designed substantial strategies to spread its wings beyond Xbox One ownership and reach every gamer in the world. Meanwhile, the widespread Minecraft community is the biggest example of cross-platform success.

Left Deep Footprints in 2018 E3

Without unveiling any hardware, Microsoft marked its prominent presence in the gaming business during 2018 E3. Microsoft Studio added new game studios to its platform to expand the Xbox One ecosystem and announced over fifty games including 18 Xbox One exclusives and 15 world premieres at the biggest gaming event.

Strong Xbox Live Subscription

The leading OS maker reported 57 million active Xbox Live subscribers stretched across Xbox One, Windows 10 and mobile devices during the fourth quarter of 2018. The figures are way above the previous year’s subscription rate at the same duration but slightly less than 59 million users recorded in the last quarter.

If you have still not enrolled in Xbox Live, you may join for free. There is another paid plan under Xbox Live Gold plan worth $ 60 per annum that offers premium features such as an ability to play multiplayer games online.

Blockbuster Xbox Game Pass

Spencer boasts that Xbox’s game-streaming subscription service, known as Xbox Game Pass will be a major contributor towards pushing Microsoft to $1 trillion milestone. Game Pass is also called the ‘Netflix of video games’. The $10/month Xbox service was introduced in June 2017 allowing gamers to get unlimited access to hundreds of Xbox One games.


Competing Amazon Twitch, Mixer is a next-generation live game streaming service from Microsoft. The service offers players real-time updates and enables participation in live game streams. Though this service is still at a novice stage, Microsoft is aggressively promoting it to connect iPhone and Android players and engage a diverse community.

Return to Gamescon

Further, Xbox Executive announced reappearance in Gamescom this year with new Xbox One bundles, fresh accessories, and a series of 25 game titles. “This year at Gamescom, we will be hosting a special episode of Inside Xbox, broadcast live from our Xbox booth in the Koelnmesse,” posted on Xbox Wire.

Gamescom will kick off on August 21 in Germany this year where developers, platforms, and gamers will meet to explore the newest in the gaming business.