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Microsoft is making 21% profit and cushioning the promotion of the game | WGN Radio 720

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A signboard for the Microsoft Office in New York on Thursday, May 6, 2021. Microsoft surprised the gaming industry when it announced on Tuesday, January 18, 2022 that it would acquire the game publisher Activision Blizzard for $ 68.7 billion. This will soon make it a bigger video game company than Nintendo. (AP photo / Mark Renihan)

Redmond, WA (AP) — Demand for Microsoft’s cloud computing services and work software increased quarterly profits by 21% as more office workers stayed home due to the outbreak.

On Tuesday, the company reported a second-quarter profit of $ 18.8 billion. Software makers generated $ 51.7 billion in revenue between October and December, up 20% year-over-year.

Last week, Microsoft announced plans to buy renowned game publisher Activision-Blizzard for $ 68.7 billion. This is a full cash transaction that could be the most expensive technology acquisition in history if it withstands antitrust oversight. It could also catapult the Xbox maker ahead of Nintendo and join Sony and Tencent as one of the three major video game companies.

However, financial results revealed on Tuesday show that it is still a business-focused product, such as Microsoft’s Azure cloud computing platform and the company’s growing suite of software products.

Net income of $ 2.48 per share exceeded Wall Street expectations. Analysts surveyed by FactSet expected Microsoft to make $ 50.71 billion in fourth-quarter revenue and $ 2.32 per share.

Sales in Microsoft’s cloud computing business segment increased 26% to $ 18.3 billion in the quarter to December.

Microsoft’s productivity segment, including the Office suite of office products such as email, increased 19% year-over-year to $ 15.9 billion. The productivity segment also includes revenue from Microsoft’s LinkedIn job networking service. This was an increase of 37% over the same period last year.

The company stopped localized versions of LinkedIn in mainland China at the end of last year. This is due to the tightening of government regulations affecting the only major western social networking platform still in operation in China.

Microsoft’s personal computing business, which includes Windows software licenses, the Xbox, and the Surface line for its devices, grew 15% to $ 17.5 billion.

Holiday gadget sales typically make the October-December quarter important for Surface devices and Xbox games and consoles. According to the company, Xbox content and service revenue increased 10% year-over-year. The number of Xboxes in late 2020 was boosted by the release of Microsoft’s Xbox Series X system, the company’s first new console since 2013.

Microsoft is making 21% profit and cushioning the promotion of the game | WGN Radio 720

Source link Microsoft is making 21% profit and cushioning the promotion of the game | WGN Radio 720

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