Microsoft’s $51.9 billion quarter saw a drop in Xbox and Windows sales
Microsoft released its fiscal results for the fourth quarter of 2022 today, reporting sales of $51.9 billion and a net income of $16.7 billion. Revenue is up 12 percent, while net income is up just 2 percent. While sales increased, Microsoft’s key businesses, such as Windows and Xbox, began to decline.
The PC industry had been prospering during the epidemic, but shipments fell by over 13 percent in the most recent quarter, according to Gartner. The drop is the steepest in nine years, owing to geopolitical concerns, inflation, and ongoing supply chain issues.
Microsoft’s Windows OEM revenue, which is the amount PC manufacturers pay Microsoft to install Windows on their machines, declined 2% in the fourth quarter, owing to “production shutdowns and a weakening PC market,” according to Microsoft.