Microsoft really could've saved a lot of time during its latest financial earnings call by quoting Dickens:"It was the best of times, it was the worst of times." It is the age of PC gaming… but the PC is dying? , but it was nonetheless part of Microsoft's justification for a major 39% drop in Windows OEM revenue in its most recent quarter.
Microsoft also blamed"execution challenges on new product launches" for an identical 39% drop in PC device sales like its Surface laptops. Considering Microsoft launched a whole slew of fresh Surface devices back in October, they clearly were not the holiday sales hits it was hoping for. And Microsoft expects this to all get worse in 2023: it's projecting Windows OEM revenue dropping by another 30% or more next quarter.
That's all"worst of times" stuff, but Microsoft had some"best of times" quotes for the PC in the tank, too. As reported by, during the earnings call CEO Satya Nadella highlighted that"usage intensity of Windows continues to be higher than pre-pandemic, with time spent per PC up nearly 10%.
"We're seeing incredible growth on PC… 130-140% year-over-year," Spencer said."That's really where we're focused. On console I've seen growth slow down on Game Pass, mainly because at some point you've reached everybody on console who wants to subscribe." . Despite the disappointments of Windows, gaming, and device sales, $27.1 billion in revenue growth from Microsoft Cloud saved the quarter.
Microsoft's gaming revenue was down 13% overall this quarter, but Microsoft noted that the decline was"partially offset by growth in Xbox Game Pass subscriptions." The company also expects that Game Pass is going to keep growing, but it won't be enough to overcome predicted"lower monetization per hour in third-party and first-party content.
Good, i hope microsoft fails along side with windows and linux gets more traction and work done on it. Windows is a fucking nightmare as well as micro soft, ms has been massively annoying so i hope they crash and burn.
It's so worth the money.