New numbers: Microsoft with problems in the PC market

On Tuesday, Microsoft presented the business figures for the fourth quarter of the 2022 financial year. The 2022 financial year has thus been history since June 30, 2022. Traditionally, a fiscal year at Microsoft always ends at the end of June and not at the end of December. Although Microsoft was able to increase sales and profits, the software company from Redmond is also struggling with problems in the PC market. Like numerous other IT companies, the current framework conditions are causing problems. So have the global Covid-19 pandemic, supply chain problems as a result of the Ukraine war and exchange rate fluctuations Microsoft’s earnings weighed down by around $1.2 billion. Total sales were $51.9 billion.

Xbox Series X|S is currently the market leader in North America

In China, strict lockdowns have reduced sales of Windows 10 and Windows 11 by $300 million. As a result of the Ukraine war that has been raging since February 24, 2022, Microsoft withdrew from Russia and consequently lost $126 million in revenue. Overall, Windows sales fell by two percent, but more new PCs and laptops are still being shipped than before the outbreak of the coronavirus pandemic.

The Xbox division suffered an 11 percent loss due to ongoing supply chain issues. In addition, demand has decreased compared to the launch of the Xbox Series X|S in November 2020. However, as Microsoft’s Kendra Goodenough explains, ongoing supply chain issues are shifting the lifecycle of the current generation of consoles. After all, the two Xbox consoles have been market leaders in North America for three consecutive quarters. With approximately $16.2 billion in revenue, the Xbox division had its best fiscal year ever. However, Microsoft is forecasting a decline in gaming revenue and revenue from Xbox services in the first fiscal quarter of 2023.

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Microsoft Fiscal Year 2022 Collection:

• Microsoft is struggling with the problems in the PC market. The global Covid-19 pandemic, supply chain problems as a result of the Ukraine war and exchange rate fluctuations weighed on Microsoft’s earnings by around $1.2 billion.
• In China alone, Windows brought 300 million dollars less sales.
• The Xbox division lost 11 percent. According to Microsoft, the ongoing supply chain problems will extend the life cycle of the console generation around Xbox Series X|S.
• Still, the Xbox division had its best fiscal year ever, with sales of around $16.2 billion. In North America, the Xbox Series X|S have been the market leaders for three quarters.
• Microsoft’s fiscal year traditionally ends on June 30th.

Sources: Microsoft, The Verge