Microsoft Corporation (NASDAQ:MSFT) CEO Satya Nadella said Tuesday that more than 10 million people have streamed games on its Xbox Cloud Gaming platform.
What Happened: Nadella, speaking at the company’s third-quarter earnings conference, said that Microsoft is “redefining how games are distributed.”
The executive said that the company’s popular titles such as its Flight Simulator are now available on multiple devices such as phones, tablets, and low-spec PCs for the first time.
“Billions of hours have been played by subscribers over the past 12 months, up 45%,” said Nadella.
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Why It Matters: At the call, Nadella said that Azure gaming revenue fiscal year-to-date rose 66%.
Microsoft’s Xbox Game Pass subscription service has 25 million subscribers and is pitched against rival Sony Group’s (NYSE:SNY) PlayStation Plus service, which had 48 million subscribers in March.
Cloud gaming is available as a part of the $14.99 per month Xbox Game Pass Ultimate tier.
On Tuesday, Microsoft’s Q3 revenue came in at $49 billion, a rise of 18% year-over-year and the figure was above the consensus of $49.03 billion.
Price Action: On Tuesday, Microsoft shares closed 4.7% higher at $282.88 in the regular session. The shares fell 3.7% in the after-hours trading to $270.22, according to Benzinga Pro data.
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