Microsoft today issued an official warning about the new coronavirus and talked about the extent to which its spread will affect the company’s overall future business. In a press release, Microsoft first admitted that the PC and Xbox divisions may have reported lower profits for the quarter than previously expected.
Microsoft’s official quarterly revenue forecast for January was between $10.75 billion and $11.15 billion, and now Microsoft has told investors and analysts that that figure may not even reach $10.75 billion. Microsoft says its supply chain is “returning to normal operations at a slower pace than expected” and that the company does not expect revenue to break through, especially with Windows OEM and Surface product lines taking a more negative hit.
So it can be said that Microsoft’s PC division is the worst hit by the new corona virus outbreak, while other business units seem to have little impact.
However, a Microsoft spokesman declined a request frommedia for a detailed explanation of the impact on the Xbox division. Several media outlets, including Gamestop, have earlier analyzed the adverse effects of the outbreak on Xbox production, with the worst-case scenario being a direct impact on next-generation consoles.
Xbox, and even Playstation consoles, like Apple’s iPhone, are mainly produced in China. Apple has been expecting a shortage of iPhone supplies for some time, and it is unlikely that Xbox and Playstation will be completely unaffected.