Fewer Xbox consoles sold last quarter compared to 2021

Microsoft is a company that often surpasses even the most positive analysts when it's time for the quarterly reports, but this time they mostly had declines to report. It turns out the chip shortages are hurting the PC market, which declined 13%, something that did hurt the sales of Windows, and revenue was down 2% in the OS department compared to the same quarter (April - June) 2021.

Despite this, the Microsoft CEO Satya Nadella pointed out that Windows is still performing better than before the pandemic and it is taking market shares:

"Despite a changing market for PCs during the quarter, we continue to see more PCs shipped than pre-pandemic, and are taking share."

Gaming was also down year-on-year and the revenue declined 7%, with Xbox hardware revenue being down 11%. Nadella does however point out that Xbox Series S/X has "been the market leader in North America for three quarters in a row among next-gen consoles" and this was the second best April - June period Xbox has ever had worldwide. Microsoft says the decline is partly because Xbox Series S/X was still fairly new and very hard to get the same quarter 2021. Kendra Goodenough, director of Microsoft investor relations, explains to The Verge:

"We're still seeing strong demand, but coming off those highs that we saw in the last couple of years with the launch."

Even with the declines and not fully delivering what was expected by analysts beforehand, Microsoft is still making more money than ever with total revenue being up 12% ($51.9 billion), and net income being up 2% ($16.7 billion).