Microsoft revenue up 17 percent due to cloud services and new Xbox consoles

Microsoft once again earned much more in the fourth quarter of last year than in the preceding months. This was largely due to the growth in cloud services such as Azure, but also due to the new Xbox consoles and the accompanying Game Pass subscription.

Microsoft achieved a turnover of 41.3 billion dollars in the last three months of 2020, equivalent to about 35.6 billion euros. That is an increase of 17 percent compared to the same quarter a year ago. The company netted $15.5 billion or $12.8 billion, an increase of 33 percent.

Part of the revenue increase came from Xbox services. There, Microsoft saw a 40 percent increase. Xbox sales increased 86 percent. The Xbox Game Pass service is also popular. There are now 18 million subscribers for this; 3 million more than in September last year. As a result, Microsoft achieved revenue of more than $5 billion in its gaming division for the first time this quarter.

The increase is also due to cloud services. Revenues from the company’s Intelligent Cloud division increased 23 percent to $14.6 billion in revenue. Specifically, Azure grew fifty percent from a quarter earlier. Other cloud services, including those within Office, also performed well. The number of Microsoft 365 customers rose to 47.5 million, which represents a seven percent increase in revenue in that sector. The revenue from the cloud services within Office increased by 21 percent. According to CEO Sayta Nadella, the increase is mainly due to the ‘second wave of digital transformation’.

The company’s sales also increased in most other areas, although the increase in Windows and computer products was minimal. The OEM sales of Windows licenses increased by just one percent and “commercial Windows products” by ten percent. Advertising revenue and Surface products grew by two and three percent, respectively.