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Microsoft posts 33% increase in net income, gaming bet pays off

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Shillong, January 31: Microsoft posted $62 billion in revenue and a net income of $21.9 billion during the quarter that ended December 31. Revenue was up 18 per cent and net income increased by 33 per cent.

Microsoft completed the acquisition of gaming company Activision Blizzard on October 13, 2023.

Xbox content and services revenue increased 61 per cent, driven by 55 points of net impact from the Activision acquisition.

Microsoft said the net impact from the Activision Blizzard acquisition was just over $2 billion in revenue. Microsoft also laid off 1,900 workers in its gaming division earlier this month — primarily affecting Activision Blizzard employees.

Revenue in productivity and business processes was $19.2 billion and increased 13 per cent for the quarter.

LinkedIn revenue increased 9 per cent. However, devices revenue decreased 9 per cent for the quarter.

“We’ve moved from talking about AI to applying AI at scale,” said Satya Nadella, chairman and CEO of Microsoft. “By infusing AI across every layer of our tech stack, we’re winning new customers and helping drive new benefits and productivity gains across every sector.”

Strong execution by our sales teams and partners drove Microsoft Cloud revenue to $33.7 billion, up 24 per cent year-over-year, added Amy Hood, executive vice president and CFO of Microsoft.

Microsoft 365 Consumer subscribers have now reached 78.4 million, nearly 16 per cent up year-over-year. (IANS)

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