Microsoft beats estimates on growth of cloud services

For the quarter ended June 30, total gaming revenue for Microsoft was $2.053 billion, which is down 10 percent from $2.286 billion this quarter previous year. The forecast helped send shares of Microsoft up more than 2.6% to record highs above $140 in after-hours trading. Fans at Gamescom will also be amongst the first in Europe to get hands-on with Project xCloud and experience the true power of cloud gaming on mobile.

On a call with investors, Microsoft CFO Amy Hood said the company expects another drop in gaming revenue in the next quarter, as the trend of declining console sales should continue, especially without any hugely popular titles on the way. Microsoft has a share of 14.6 per cent, while Google has 9.9 per cent.

"The pressure was obviously on but they executed", said Hal Eddins, chief economist for Microsoft shareholder Capital Investment Counsel.

In an expansion of their existing partnership, Microsoft and AT&T Communications announced a multiyear deal via which AT&T will be moving "much" of its workforce to Microsoft 365, its bundle of Windows 10, Office 365 and Enterprise Mobility + Security.

Synergy Research Group analyst John Dinsdale says Microsoft is still a long away behind Amazon but well ahead of the rest of the pack as a provider of cloud infrastructure services.

Microsoft on Thursday reported quarterly profit of $13.2 billion, powered in large part by a steadily growing cloud computing business that the company says now accounts for nearly a third of its total revenue. Analysts on average had expected revenue of $10.71 billion, according to IBES data from Refinitiv.

Sterling extends fall below $1.24 on Brexit and economic growth fears
Sterling was also steadier against the euro after hitting fresh six-month lows. By 0720 GMT, the pound was down 0.15% at $1.2386 GBP=D3 .

The company also saw revenue rise from server products; Windows operating software; online search advertising, and its Surface table computers.

AT&T and Microsoft said that in addition to their technology alliance, the two plan on collaborating on "technology-enabled approaches" to addressing social causes, such as homelessness, accessibility, and sustainability.

Microsoft's booth at the show, located in Hall 8 of the Koelnmesse, will: "Feature almost 200 gaming stations with a fantastic line up of titles across a variety of genres and platforms", as well as some tasty hardware for PC gamers: "We'll also have custom-built PCs from BoostBoxx by CSL, the latest gaming laptops and desktops from Acer and other partners showcasing high-quality components that deliver powerful PC gaming experiences".

Lastly, at Xbox, we believe that gaming should be safe, inclusive, and accessible for all, and in that spirit we're excited to announce that our booth is even more accessible to fans at the show this year. He said the company did not feel any impact from sales restrictions placed on Huawei Technologies Co Ltd [HWT.UL] by the USA government.

Microsoft shares rose 1.4 percent to $138.35 in after-market trading that followed release of the earnings figures.

Excluding items, the company earned $1.37 per share, topping estimates of $1.21 per share.