Microsoft reports loss, sells fewer Windows licenses

Microsoft made a quarter less revenue with sales of Windows licenses the last quarter compared to the year before. Manufacturers reportedly don't buy licenses due to the Windows 10 release next week.

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Last year Microsoft also benefited from stopping Windows XP support after which many companies purchased new licenses. Microsoft doesn't provide the number of sold licenses but does report revenues on Windows licenses dropped 22% compared to the same period last year. Also the shrinking PC market contributed to the decline.

Microsoft's phone division also generated less revenue. The company sold more Lumia smartphones but they generated less income. According to Microsoft that's because consumers bought cheaper Windows Phones on which it makes less profit. The rest of Microsoft did fairly well, especially its tablet and game division. Revenues from Surface sales increased with 117%, especially due to the Surface 3. Microsoft also saw a 27% increase in demand for Xbox consoles and the company reports it saw more Xbox Live transactions.

The company further reports it revenues from online services are growing. Search engine Bing saw a revenue increase and currently holds a 20.3% marketshare on the American market. Microsoft also saw 3 million new Office 365 subscribers, the service now totals about 15 million subscribers.

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Microsoft reports its revenues were $22 billion in the last quarter. The company made a loss of $2.1 billion mainly due to the purchase of Nokia's phone division which, with all additional restructuring, cost more than $8.4 billion.

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