Microsoft took off new fiscal year very good. It took in $56.5 billion in the first quarter, up 13% from last year. Net profit then increased year-on-year by 27 to 22.3 billion dollars. It is also a good proof that he is no longer dependent on classic computers. Their sales fell by 8% worldwide without significantly harming Microsoft.
The head of the company, Satya Nadella, praises the great interest in artificial intelligence and co-pilots, but does not provide any financial indicators for this. Indeed, AI may be successful among users, but for now it is a black hole for money, because the costs of building the infrastructure and running it are much higher than revenues from operating services.
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Copilots and Bing Chat will certainly not make money on each other, but Microsoft hosts a number of third-party AI applications in its Azure cloud, so it can already generate dollars in this regard.
Cloud and servers, at $24.3 billion (19% growth), remain Redmond’s strongest division. However, the part focused on productivity and business also grew by 13% to 18.6 billion dollars. The company increased revenues from Office, driven primarily by Microsoft 365 subscriptions. 76.7 million users already pay for the consumer version. The LinkedIn professional network and Dynamics CRM systems also did well.
The computer division reports 3% growth to $13.7 billion. Here we already see the first partial failures. Microsoft’s sales of devices and accessories fell 22%, but the company should recover this quarter as it introduced several new Surfacs. The sale of gaming hardware also increased by 7%. Another confirmation that Xbox will not keep up with PlayStation even in this generation.
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However, software and services show the opposite picture. Despite the global slump in the PC market, revenue from Windows OEM licenses increased by 4%. And despite weakened console declines, the entire gaming division grew 9%. The 13% growth from game sales and Xbox Game Pass subscriptions gave it a plus. Microsoft made it more expensive, and in the fall it also released the expected RPG Starfield, which probably helped sales of licenses and Game Pass.
2023-10-27 15:49:34
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