Microsoft earnings: Xbox hardware sales shot up 86% with Series X/S

Enlarge / The Xbox Collection X, which launched in November.

Microsoft delivered its earnings report for Q2 2021 yesterday, and the corporate has continued its dash of very sturdy quarters, once more pushed primarily by Azure and the cloud. However that very same outdated story is not the one one right here: the report additionally tells us a factor or two concerning the new Xbox’s efficiency, in addition to Home windows and Workplace.

General, Microsoft beat analyst expectations. The corporate’s top-level income grew 17 p.c 12 months over 12 months, reaching $43.08 billion. Analysts had anticipated $40.18 billion. $14.6 billion of that was from the enterprise phase Microsoft calls “Clever Cloud,” which most notably consists of Azure but additionally another skilled companies like GitHub.

Cloud wasn’t the one constructive story, although. Private Computing together with Home windows, Xbox, and Floor grew 15 p.c in comparison with the earlier 12 months to only over $15 billion. That included an 86 p.c enhance in Xbox {hardware} gross sales, in addition to a 40 p.c enhance in Xbox content material and surfaces—the previous of these consists of the launch of the Xbox Series X/S consoles in November, and the latter consists of Game Pass, which Microsoft has been pushing arduous as a core worth proposition for the Xbox recreation platform.

It additionally consists of Microsoft’s streaming games service, although that service continues to be nascent, and it is unlikely to have had a big impression on driving these companies numbers up.

That mentioned, the price of producing and advertising and marketing the brand new Xbox really shrank Microsoft’s margins through the quarter—down from 40 p.c to 34.6 p.c in that Private Computing phase.

Home windows had a considerably much less spectacular quarter, because it was basically stagnant at 1 p.c development, even supposing IDC reported conventional PC gross sales have been means up final quarter. Admittedly, a part of the large numbers offered by IDC got here from the enlargement of ChromeOS past the training market and relative development for Apple’s macOS-based {hardware}.

There may be additionally the Productiveness and Enterprise Phase—together with Workplace and LinkedIn. That, too, grew. Complete income for the phase was $13.35 billion, which suggests it was up 14 p.c.

Microsoft gave considerably extra conservative steerage to traders for the following quarter, with a variety between $40.35 billion and $41.25 billion.

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