Microsoft Reveals How Much Money It Made: Bad News for Xbox and Game Pass
Microsoft has released its financial status report for the last quarter of ours. The reports reveal that Microsoft's revenue and profits have grown. However, Microsoft has serious problems.
Microsoft, a tech giant from the United States, Microsoft has released its financial status update for its first quarter in 2023. Microsoft’s earnings are not positive. Since the company was capable of increasing its revenue in Office cloud, server and products. Revenues generated by OEM, HoloLens, accessories and other products decreased. This isn’t rational since it is a case of increasing revenue in one segment while losing money in other categories means risks for the company.
However, the company ended the final quarter in a profitable manner. In the financial statements on the last quarter’s earnings report, it was revealed that the company made a revenue from 52.9 million dollars were made while 18.3 billion dollars as a profit. Therefore, Microsoft’s revenues grew by 7 percent while profits increased of 9 percent. Let’s take a look step-by-step through these explanations.
The upcoming Activision deal could trigger alarms regarding Xbox as well as Games Pass
It’s not getting much better in The Xbox front, with Microsoft’s joystick. According to the report it is reported that there was an increase of 3 percent in the revenue of the Xbox content and services segment. However, Xbox sales dropped by 30% in the quarter. According the Microsoft the CEO Satya Nadella, the situation isn’t as dire as we initially thought. Nadella said that the quarter set records in terms of the number of active players per month. The most up-to date information regarding the active players, reported as 120 million during the previous quarter, was released.
Although PlayStation’s PlayStation sales are rising by a significant amount however, Microsoft’s massive loss of sales of 30 percent doesn’t provide positive signals for Microsoft in the long longer. Additionally it appears that the UK has stopped its $69 billion Activision agreement. Although it was not the ultimate decision in the agreement, the bringing to bring Activision games to the Microsoft umbrella was thought to be the best way to stop the negative trend.
Windows revenues fell 28 percent
Microsoft’s Windows OEM sales (the cost that PC manufacturers pay Microsoft to obtain the right to use a Windows license) dropped by 28 percent. This is not a surprise since research has shown that the laptop and PC market has declined by 30. Microsoft has experienced its fair share as well.
Accessory revenue also declined 39 percent
With the HoloLens the smart glasses created by Microsoft and its Surface merchandise and PC accessories also suffered revenues. The decline was estimated at 30 percent, similar to the figures in Windows.
Microsoft Office, cloud and server services were the only thing to make Microsoft look happy!
The only area that created Microsoft feel happy was Microsoft Office cloud, server products. Revenues of the company grew by 27 percent in the Azure front, and 17 percent for the server and cloud products front. Its total number of Microsoft 365 subscribers increased by 12 percent to 65.4 million. The revenue generated by Office applications grew thirteen percent personal customers and 14 percent to corporate customers. Microsoft declared that LinkedIn increased 15 percent in the current quarter, and that it increased its revenue of 8 percent. When it comes to business-oriented products we can say that Microsoft has reported by Microsoft that its number of users on Microsoft Teams is based on 300 million.
