Significant growth in Microsoft 365 subscribers, Xbox hardware revenues and increased demand for Azure infrastructure drove Microsoft to record revenue in the third quarter.
When the demand for cloud infrastructures explodes during the pandemic period, the provider companies naturally add income to their income. Microsoft achieved record revenues in the third quarter of the year, exceeding expectations.
According to the statement made by the company, in the third quarter of the year, it grew by 22 percent, generating $45.3 billion in revenue. Net income was $20.5 billion, up an impressive 48 percent. Office, cloud services, and gaming raised the bar this quarter.
The smart cloud segment generated $17 billion in revenue during this period, increasing 31 percent. In particular, Microsoft 365 performed well, while the total number of subscribers rose to 54.1 million. Azure infrastructure also showed 50% revenue growth.
The Surface division slumped 17 percent, while Xbox hardware revenues rose by a record 166%. While Microsoft’s entire gaming division generated $3.6 billion in revenue, Xbox content and services grew only 2 percent. Such a picture emerged when Xbox Game Pass had difficulties in gaining subscriptions.
Microsoft expects significant revenues from cloud infrastructures in the new period as well. The Surface division, on the other hand, will continue to decline. With the new games to be added to the Game Pass infrastructure, there may be movement in the Xbox section.