Microsoft recently disclosed its earnings for the fourth quarter of 2002 and the results were far from encouraging. While the company’s Windows and devices division suffered a 3 percent decrease in revenue, the Xbox division saw an impressive 8 percent increase.
The Windows and devices division is Microsoft’s flagship business and the face of the company, but it has been in decline in recent years, mainly due to competition from cheaper alternatives such as Google Chromebooks and Apple’s iPad. In the fourth quarter, Microsoft reported a 3 percent decrease in revenue from the Windows and devices division, due in part to a 7 percent drop in sales of Windows licenses.
Despite this, the company’s Xbox division is doing remarkably well. Microsoft reported an 8 percent increase in revenue for the Xbox division over the fourth quarter of 2017. This is likely due to the continued success of the popular Xbox One console, as well as the introduction of the new Xbox One X. Microsoft has also been pushing its Game Pass subscription service aggressively, which has been an added boost.
The Xbox division has been a bright spot in Microsoft’s otherwise gloomy outlook, and it’s clear that the company is relying on it to help turn the tide. Xbox remains the most profitable division within Microsoft and its success has largely been attributed to the company’s willingness to invest heavily in software and services. As the Xbox division continues to grow, it should provide Microsoft with much-needed breathing room as it attempts to right its ship.
The future of Microsoft’s Windows and devices division is uncertain, but the company’s Xbox division is in good health. Microsoft is doing everything it can to ensure the Xbox division continues to thrive, and it’s clear that its efforts are paying off.