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Microsoft earnings: strong quarter, but Xbox revenue dives

Microsoft has announced its quarterly financial statements, reporting revenue of $33.7 billion, up 12% on the same period last year.

The company stated that Azure revenue is up 64% year on year. Azure has overtaken the other two segments and is now the biggest, by a small amount. In addition, Azure gross margin has improved by 6% year on year.

Office 365 revenue is up 31% year on year.

Gaming was a black spot, declining 10% year on year – though Xbox Live monthly active users is at a record 65 million. The main problem is a 48% decline in the volume of Xbox consoles sold.

Quarter ending June 30th 2019 vs quarter ending June 30th 2018, $millions

Segment Revenue Change Operating income Change
Productivity and Business Processes 11047 +1379 4344 +878
Intelligent Cloud 11391 +1785 4502 +601
More Personal Computing 11279 +468 3559 +547

The segments break down as:

Productivity and Business Processes: Office, Office 365, Dynamics 365 and on-premises Dynamics, LinkedIn

Intelligent Cloud: Server products, Azure cloud services

More Personal Computing: Consumer including Windows, Xbox; Bing search; Surface hardware

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