Microsoft says it might not hit its financial targets due to coronavirus

Microsoft says it might not hit its financial targets due to coronavirus

Software giant Microsoft has said it is likely that it will not hit its revenue target for its third quarter.

That's due to the fact that its business is being affected by the coronavirus outbreak that is currently spreading over the world. The area specifically named as being impacted was the Xbox firm's "More Personal Computing" segment, which was set to bring in between $10.75bn and $11.15bn for the three month period.

The Big M has said that its pipeline in China has been affected by the health situation.

The company hasn't mentioned its games business yet, with Microsoft saying that other areas of its business are not affected.

"On January 29th, as part of our second quarter of fiscal year 2020 earnings call, we issued quarterly revenue guidance for our More Personal Computing segment between $10.75 and $11.15 billion, which included a wider than usual range to reflect uncertainty related to the public health situation in China," a press release said.

"Although we see strong Windows demand in line with our expectations, the supply chain is returning to normal operations at a slower pace than anticipated at the time of our Q2 earnings call. As a result, for the third quarter of fiscal year 2020, we do not expect to meet our More Personal Computing segment guidance as Windows OEM and Surface are more negatively impacted than previously anticipated. All other components of our Q3 guidance remain unchanged."

Editor - PC Games Insider

Alex Calvin is a freelance journalist who writes about the business of games. He started out at UK trade paper MCV in 2013 and left as deputy editor over three years later. In June 2017, he was hired to launch for Steel Media before departing the firm in October 2019.

He has also written for, VGC, Games London, The Observer/Guardian and Esquire UK.


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