Microsoft Corp
What Happened: On Thursday, during the third-quarter earnings call, Nadella revealed that Microsoft had set new records for game streaming hours, console usage, and monthly active devices.
The CEO also highlighted the successful addition of Diablo 4, the first Activision Blizzard, title to the Game Pass service. "Subscribers played over 10 million hours within the first 10 days, making it one of our biggest first-party Game Pass launches ever," he said.
He then went on to speak about the ongoing success of Call of Duty: Modern Warfare 3, saying, the game has been attracting new gamers and retaining franchise loyalists.
Nadella also informed that Microsoft is expanding its games to new platforms. "Finally, we are expanding our games to new platforms, bringing four of our fan-favorite titles to Nintendo Switch and Sony PlayStation for the first time. In fact, earlier this month, we had seven games among the top 25 on the PlayStation store more than any other publisher," he stated.
Why It Matters: Microsoft's gaming division has been a significant driver of its overall growth. The company's third-quarter revenue increased 17% year-over-year to $61.9 billion, beating the consensus estimate of $60.804 billion. Microsoft has now beaten analyst estimates on both the top and bottom lines in five consecutive quarters, according to Benzinga Pro.
The company also exceeded analyst expectations by posting quarterly earnings of $2.94 per share, compared to the forecasted $2.82 per share.
This success comes on the heels of Microsoft's acquisition of Activision Blizzard. Nadella had previously expressed enthusiasm for the acquisition, emphasizing the opportunity to become a "good publisher" across various platforms, including rival consoles like Sony and Nintendo.
Earlier this month, six months after the acquisition, Blizzard executives revealed that Microsoft had largely allowed Blizzard to maintain its autonomy.
MSFT Price Action: Microsoft shares were up 4.31% after hours at $416.25 at the time of publication, according to Benzinga Pro.
