Microsoft posted the first quarter of its 2019 financial results today, reporting revenue of $29.1 billion and net income of $8.8 billion. Revenue is up 19 percent, and net income has increased by 34 percent. Microsoft says this is a record first quarter, thanks primarily to strong cloud growth.
Surface revenue has jumped 14 percent year over year this quarter to $1.1 billion. This is the first quarter since Microsoft launched its Surface Go tablet in August, and it’s clear Surface is now a solid billion dollar business. Microsoft has also managed to become a top five PC manufacturer in the US during the recent quarter, thanks to Surface.
Microsoft also unveiled its new Surface Pro 6 and Surface Laptop 2 laptops recently, but these devices didn’t go on sale until October so the revenue will be counted next quarter. Likewise, the new Surface Studio 2 and Surface Headphones won’t be available until next month so we’ll have to wait for Microsoft’s Q2 2019 financial results to see if these have an impact.
Microsoft’s gaming business has been growing steadily recently, and revenue is up 44 percent this quarter. Xbox hardware revenue has grown 94 percent this quarter, due to the timing of the Xbox One X launch. Xbox Live active users has also grown to 57 million in the recent quarter.
Microsoft even revealed recently that it plans to start trials of its xCloud game streaming service in 2019. Microsoft’s cloud gaming will have strong competition from services like GeForce Now, PlayStation Now, Shadow, and Liquid Sky. Even Google is testing its own Project Stream service that will let gamers play Assassin’s Creed Odyssey through its Chrome browser on a laptop or desktop.