Per the WSJ, Microsoft is making great strides in the gaming space.
“The company reported a record 18% year-over-year jump in gaming revenue to $2.3 billion for its fiscal third quarter ended March 31, and its Xbox Live service now claims 59 million monthly active users and has grown 13% in the last year.”
Revenue opportunities have evolved quickly and moved beyond consoles and games to digital services, subscriptions and in-game sales. The article cited Morgan Stanley analyst Keith Weiss’ estimate that hardware sales (consoles, etc.) will contribute 16% of Microsoft’s top line by 2021, down from 28% today.