Microsoft reports strong Q4 earnings as Surface and gaming both up

Microsoft posted the fourth quarter of its 2018 financial results today, reporting revenue of $30.1 billion and net income of $8.9 billion. Revenue has increased 17 percent year over year, and net income is up an impressive 35 percent. Microsoft’s Office and cloud offerings continue to fuel the company’s growth, but both the Surface and gaming businesses are up this quarter, too.
Surface revenue has jumped 25 percent year over year this quarter to $1.1 billion, “driven by strong performance of the latest editions of Surface” says Microsoft. The billion dollar target was important this quarter, as it means Surface has now ended the financial year as a billion dollar business.

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Microsoft recently unveiled the new Surface Go, but the smaller 10-inch tablet doesn’t go on sale until next month. Microsoft has relied on existing Surface devices to fuel growth this quarter, as the company has not yet launched refreshed models this year.

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Microsoft’s gaming business is also growing, just as the company has unveiled its plans for game streaming. Gaming revenue increased 39 percent this quarter, alongside Xbox software and services revenue growth of 36 percent. Microsoft no longer reveals Xbox hardware sales, so it’s still not clear exactly how its consoles are contributing to the way it now reports its gaming business. Still, Xbox Live active users also grew to 57 million, thanks to users across Xbox One, Windows 10, iOS, and Android.

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