Microsoft Corporation (NASDAQ: MSFT) CEO Satya Nadella said Tuesday that more than 10 million people have streamed games on their Xbox Cloud Gaming platform.
What happened: Speaking at the company’s third-quarter earnings conference, Nadella said Microsoft “redefines how games are distributed.”
The director said the company’s popular titles, such as 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 last 12 months, an increase of 45%,” Nadella said.
Also see: How to Buy Microsoft (MSFT) Shares
Why it matters: At the call, Nadella said Azure gaming revenue in the fiscal year to date increased 66%.
Microsoft Xbox Game Pass the subscription service has 25 million subscribers and is fighting rival Sony Group (NYSE: SNY) PlayStation Plus service, which had 48 million subscribers in March.
Cloud games are available as part of the $ 14.99 per month Xbox Game Pass Ultimate level.
On Tuesday, Microsoft’s third-quarter revenue reached $ 49 billion, an 18% year-over-year increase, and the figure was above consensus at $ 49.03 billion.
Price action: On Tuesday, Microsoft shares closed 4.7% higher at $ 282.88 in the ordinary session. Shares fell 3.7% in after-hours trading to $ 270.22 according to Benzinga Pro data.
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