Microsoft Q2 results - Surface Pro is bringing in $1.1 billion, Minecraft is printing money, XBox Sold Plenty, Windows is down and more

[GoodBytes]

Microsoft releases its Q2 quarterly report and it is filled with good news for the company.

The once difficult start Surface line products has now brought $1.1 billion dollars mostly due to the Surface Pro 3 and accessories as revenue, something that many analysts predicted previously (they said if trend continues the Surface will bring a billion dollar product). Sadly, once again, no sales numbers are shared, but seeing how Microsoft is dropping Windows RT, I think it is safe to assume that the majority are from the Pro series line.

This really highlights people understanding the power of the pen on a tablet space, and convertible device (powerful non-gaming ultrabook that is also a tablet, all by being thin and light).

 

Today, the numbers are out as Microsoft released its FY15 Q2 earnings, and just as expected, Surface revenue is up. As of Q4 2014, Microsoft earned $1.1 billion worth of Surface revenue, that’s a 24% increase from the same quarter in 2013. Microsoft notes that the revenue is mostly from sales of the Surface Pro 3 and its accessories.

Says, WinBeta

As we know Microsoft bought Minecraft for $2.5 billion a while back. And that lead to a revenue increased by 79 percent bringing in $171 million. It has a sadly a long way to go to get its money back, but it is doing well none the less, so far. However it must be noted that it is not Minecraft alone at this, this include Forza Horizon 2 and Halo: The Master Chief Collection, but Minecraft is the main one that brought the most to Microsoft.

 

As part of its financial results from the second quarter of its 2015 fiscal year, Microsoft announced that first-party video game revenue increased by 79 percent to $171 million over the same period last year. In its statement on the increase, Microsoft attributed the boost as "mainly due to sales of Minecraft following the acquisition of Mojang" as well as the launches of "Halo: The Master Chief Collection" and "Forza Horizon 2."

Says Neowin.

As for the XBox gaming console, it sold 6.6 million units during that period (XBox One and 360), more strongly in the holiday period due to a more aggressive pricing, it placed.

Microsoft is beginning to regain momentum against Sony’s PlayStation 4 in the US, and the company notes that it has sold 6.6 million Xboxes (that’s Xbox One and Xbox 360) in the quarter ended December 31st. That’s a decrease on the 7.4 million sold over the quarter last year. While that's a combined value of Xbox 360 and Xbox One sales, shipments of the Xbox One itself have undoubtedly been boosted by the temporary price cut the console received just before the busy holiday period, and Microsoft has now made that a permanent price drop to $349 for the version without Kinect. These price cuts have helped hit Xbox platform revenue though, with it decreasing 20 percent year-over-year. Microsoft notes a natural decline in Xbox 360 sales also affected overall Xbox performance. The company has not revealed how many Xbox One consoles it sold during the recent quarter.

Says the Verge

Sadly, for Windows OEM sales, it is down by 13%, which Microsoft attributes to its free licenses of Windows

OEM revenue for Windows decreased by a massive 13 percent this quarter. Microsoft blames the drop on the business PC market and lower-priced licenses for devices sold to students and teachers.

And of course businesses are skipping Windows 8, not to mention that most follows a 6 year upgrade cycle, hence why Microsoft is working hard on Windows 10. However, Windows volume licensing revenue increased by 3%.

As for its Lumia phones:

On the Lumia side, Microsoft continues to focus on the low-end without a flagship handset, but the gamble has paid off. Microsoft has sold 10.5 million Lumia devices in the latest quarter, compared to the 8.2 million during the same period last year. That's an impressive 28 percent increase year-over-year, and exactly the direction that Lumia and Windows Phone needs to be heading. However, it comes at a cost. Windows Phone revenue has dropped by 61 percent, and Microsoft blames a Nokia commercial agreement which terminated during fiscal Q4.

Says The Verge.

As for cloud storage and Azure, it is going strong for Microsoft.

Revenue has increased 9 percent for server, and commercial cloud revenue grew by massive 116 percent thanks to Office 365, Azure, and Dynamics CRM. On the consumer side of Office, 9.2 million people are now subscribed to a mix of Office 365 Home and Personal, up from 3.5 million this time last year. However, Office consumer revenue is down 25 percent. Microsoft blames the transition to cloud versions of Office and a decline in Japan’s PC market where the company says "Office has high attach to PCs."

Says The Verge.

Search advertising is also up by 23% due to Bing increase market share to 19.7%

Source 1: http://www.theverge.com/2015/1/26/7917559/microsoft-earnings-report-q2-2015

Source 2: http://www.winbeta.org/news/microsofts-q2-2015-66-million-xbox-consoles-sold-strong-holiday-performance

Source 3: http://www.neowin.net/news/039minecraft039-is-already-printing-money-for-microsoft#add

Source 4: http://www.winbeta.org/news/microsofts-q2-2015-11-billion-surface-revenue-driven-surface-pro-3-and-accessories

Source 5 : http://www.winbeta.org/news/microsofts-q2-2015-recap-265-billion-revenue-despite-drop-profits

[Kherm]

Ooooo Ninja'd

 

http://linustechtips.com/main/topic/298849-microsoft-the-comeback-kid/

[Trik'Stari]

Change that to "handicapped minecraft" please.

[GoodBytes]

[broken forum - please delete]

[GoodBytes]

[broken forum - please delete]

[GoodBytes]

Ooooo Ninja'd

 

http://linustechtips.com/main/topic/298849-microsoft-the-comeback-kid/

Complete different topic.

And my post broken into bits.... ok

[Kherm]

Complete different topic. You should read.

And my post broken into bits.... ok

oh wow , the separate posts makes it much easier to digest, so sorry that I cut you off so early. 

[GoodBytes]

oh wow , the separate posts makes it much easier to digest, so sorry that I cut you off so early.

I didn't cut it into bits. I need to clean it up.. aaaand I can edit any of my post but my main one one...ooookkkk.. will try later

Forum is still broken

[amdart11]

Inferesting to see the surface pro do well, not that i had many doubts about it this time round. As for the surface rt, I think we all saw this coming as windows 8 was poorly executed and the lack of apps and other functionality that a true tablet requires. The rt just didn't have a place in the market.

[GoodBytes]

There post fixed now

[Victorious Secret]

That so called "original post" was badly formatted and lacked details, this one does. You don't accuse the newsteam of reposting when their reposts are of higher quality. 

Azure is going to be the motherload for the rest of time, the amount that MS will make from it all is amazing. 

[Sidiox]

Nice, I love my SP3 and I think it is an amazing device, I hope this allows MS to make more in the Surface line of products

[GoodBytes]

Interestingly enough. Microsoft stock took a plunge despite showing growth in many sectors.

From what I am reading, it is apparently due to Windows sales being in a decline.

[JAKEBAB]

Honestly when im due for a laptop upgrade i will be getting a surface product fingers crossed by then they will go back to wacom digitisers.

[RH00D]

Interestingly enough. Microsoft stock took a plunge despite showing growth in many sectors.

From what I am reading, it is apparently due to Windows sales being in a decline.

 

Which is interesting because that is only due to them giving away so many free licenses, not because people are switching away from Windows. Not to mention, Windows volume licensing actually increased.

[Toddwjp]

Windows sale decreasing, probably because it's coming up on a Windows refresh, and like I said in another thread, if the surface came before the Ipad, things would be wonderful