Microsoft did more business in gaming than with Windows; garbs 3rd spot

Microsoft’s latest financial report reveals a notable shift in its business landscape. For the first time, gaming surpassed Windows to become the company’s third-largest revenue generator, highlighting the growing importance of this sector.

Gaming revenue surged 49% year-over-year, reaching $7.11 billion, eclipsing Windows’ $5.26 billion. This significant jump is heavily influenced by the recent acquisition of Activision Blizzard, bringing major franchises like Call of Duty and Candy Crush under Microsoft’s gaming umbrella.

The integration of Activision Blizzard contributed over $2 billion to gaming revenue, clearly showing the immediate impact of the acquisition.

Xbox content and services, including the popular Game Pass subscription, experienced a significant 61% growth, indicating strong consumer engagement within the platform. Microsoft has not released updated subscriber numbers for Xbox Game Pass.

On the other hand, Windows OEM revenue, representing the price paid by manufacturers for Windows licensing, saw an 11% increase, suggesting a potential rebound in the PC market. However, device revenue, including Surface products, declined by 9%.

Microsoft’s established strongholds, Office, and cloud services, maintain their leading positions. Office revenue grew 13%, driven by the continued adoption of Office 365 subscriptions, with both commercial and consumer segments demonstrating positive growth. Additionally, Azure and other cloud services witnessed a 30% increase in revenue, solidifying Microsoft’s position as a main cloud computing player.

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