Microsoft earnings beat expectations, driven by video game sales and cloud demand

Microsoft

New York (CNN Business)Microsoft reported a solid quarter as the pandemic drove demand for its cloud and video game businesses.

The company reported $37.2 billion in revenue for the three months ending in September, well above analysts’ predictions of $35.8 billion.
Revenue in the intelligent cloud segment reached $13 billion, up 20% from the year-ago period. Personal computing revenue was up 6% to $11.85 billion, seeing a boost from Xbox and Microsoft Surface devices sales.
Earnings for the quarter were $1.82 per share, which were well above the $1.55 per share analysts had forecast. Microsoft’s stock was up 1.51% at market close.
Microsoft is at the cusp of releasing its next-generation video game console, the Xbox Series X, and the more budget-friendly Xbox Series S next week. How the consoles sell could impact the tech company’s personal computing bottom line next quarter. The two consoles will be competing against Sony’s PlayStation 5 and a disc-less, less expensive version of that device.
During the last quarter, Microsoft also announced it acquired ZeniMax, the parent company of video game publisher Bethesda. The acquisition gives Microsoft ownership over popular video games including the “Fallout” series, “Elder Scrolls V: Skyrim” and the “Doom” franchise. Those games could help Microsoft inch its way forward in the console wars.

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