Friday, January 24, 2014

Microsoft moved 3.9 million Xbox Ones, while Surface sales soared

The company's search for a new CEO is still the dominant narrative surrounding Microsoft. But if you're able to get past the quest to replace Ballmer, you'll find a company that's starting to get something of a second wind in its long life. For one, its new Xbox One console is selling quite well. After getting off to a slightly rocky start and trailing the latest PlayStation in initial sales, it outsold its rival in the US for the Month of December. All told during the last quarter Redmond pushed 3.9 million of the next-gen (now-gen?) gaming rigs out to retail channels. That's in addition to 3.5 million Xbox 360s, which are still selling well and are quite a bargain compared to the new systems.

Another unit that struggled early on, Surface, seems to be righting the ship as well. (Though, its rough patch lasted a ways longer than the Xbox One's.) Revenues from Surface sales more than doubled from $400 million last quarter to $893 million. And let's not forget, that $400 million dollars represented a 47 percent increase over the quarter before that.

Obviously, things are not all rosy. Its desktop consumer Office and Windows 8 offerings continue to see revenues fall. But, the growth of its device division and increased income from Bing (which, stunningly, now accounts for 18.2 percent of searches in the US, according to Microsoft) are beginning to compensate for the "softness in the consumer PC market."

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