Microsoft's Surface tablet and Xbox businesses are booming
The company also notes that it sold a healthy 6.6 million Xbox systems during the holidays. Unfortunately, Microsoft isn't breaking that down by model. While there's no doubt the Xbox One turned a corner this fall through aggressive discounts and a better game selection, it's hard to know how many of those sales were modern systems. Sony was quick to say that it sold 4.1 million PlayStation 4s just during the last month of holiday shopping, so it's apparent that there was at least a fierce fight between current-generation platforms.
It's otherwise a quarter for the Redmond crew. The company posted a rare net operating loss of $243 million, although you can largely chalk that up to the costs of both its massive restructuring plan and integrating Nokia's former mobile team. Windows licensing revenue is down 13 percent year-over-year thanks to both an unforgiving PC market and free Windows licenses for small devices, but that's offset by the company's continued successes in cloud efforts, such as Bing search and Azure. In short, Microsoft is still transitioning away from an old-school strategy where Windows sales reign supreme. The upcoming release of Windows 10 will undoubtedly be important, but it won't be quite as much of a make-or-break product as its ancestors.
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