Microsoft reviews weaker Surface and Windows income amid world chip scarcity

Microsoft posted the fourth quarter of its fiscal 2021 financial results today, reporting income of $46.2 billion and a internet earnings of $16.5 billion. Revenue is up 21 p.c, and internet earnings has elevated by 47 p.c. While cloud and Office providers have boosted Microsoft’s revenues, it’s clear that the worldwide chip scarcity is taking its toll.

With the PC market experiencing its first huge progress in 10 years earlier this yr, there have been some indicators not too long ago that laptop computer and PC gross sales could possibly be beginning to gradual once more amid a worldwide chip scarcity. Microsoft’s Windows outcomes this quarter mirror that.

Windows OEM income has declined by three p.c, in what Microsoft blames on “provide chain constraints. Windows non-pro OEM income additionally declined 4 p.c, with Windows OEM Pro income additionally down, by 2 p.c.

Microsoft is now planning to spice up the PC market with the introduction of Windows 11, which is anticipated to ship on new gadgets in October. Windows 11 is a visible overhaul to the working system, with a brand new Start menu, up to date design, and an general simplification of Windows.

This current quarter can be the primary time we’ve seen the brand new Surface Laptop 4 mixed with gross sales of the Surface Pro 7 Plus have an effect on general Surface income at Microsoft. Surface income has decreased by 20 p.c this quarter, “driven by supply constraints” and a robust quarter of Surface gross sales within the yr prior.

Photo by Vjeran Pavic / The Verge

Microsoft’s Xbox Series X and Series S consoles at the moment are on their third quarter of gross sales, after serving to develop {hardware} income in current months. Hardware income is up once more, as anticipated, by 172 p.c. Microsoft’s general gaming income is up by 11 p.c, however Xbox content material and providers income has declined by 4 p.c. Microsoft mentions progress in Xbox Game Pass subscriptions and first-party titles offsetting declines from third-party title income throughout a robust quarter within the yr prior.

Microsoft has not disclosed new Game Pass subscriber numbers, after the corporate revealed it had 18 million subscribers again in January. Microsoft had been commonly revealing Xbox Game Pass numbers over the previous yr, nevertheless it has now gone two quarters with none updates.

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