Squishmallows With Guns - FY24 Q2 earnings, Teams worldwide outage, 1st-run experience redesign

Microsoft announced Tuesday that it earned a net income of $21.9 billion on revenues of $62 billion in the quarter ending December 31, 2023. Those figures are up 33 percent and 18 percent, respectively, year-over-year (YOY)
Microsoft earnings
• Analysis of Microsoft’s FY24 Q2
• You Can’t Spell Activision Without AI
Intelligent Cloud: Azure, AI
• Microsoft’s biggest business unit delivered $25.9 billion in revenue, up 20 percent YOY and driven primarily by its Azure cloud platform
• Azure revenues were up 30 percent in the quarter, 6 points of which Microsoft attributed to "AI services"
• Server and cloud services revenue jumped 22 percent.
• Enterprise Mobility installed base grew 11 percent to over 268 million seats
Productivity and Business Processes: Microsoft 365
• $19.2 billion in revenues, with growth of 13 percent YOY
• Office Commercial revenues were up 15 percent, and Office 365 seats grew 12 percent
• Office Consumer grew 5 percent, with the Microsoft 365 consumer offerings growing 16 percent to 78.4 million subscribers
More Personal Computing: Xbox, Windows
• Revenues of $16.9 billion, up 19 percent YOY
• Activision Blizzard has changed things: Gaming revenues surged 49 percent (44 points from Activision Blizzard)
• Activision Blizzard has changed things: Xbox content and services revenues were up 61 percent (55 points from Activision Blizzard)
• Xbox hardware revenues inched up by 3 percent\
• Windows revenues from PC makers grew 11 percent in the quarter, with Microsoft citing "market volumes stabilizing to pre-pandemic levels"
• That stabilization didn't help the Surface business, as Microsoft reported a 9 percent decline in revenues from Devices
Other industry financial reports
• Google was bigger than Microsoft, with non-advertising businesses seeing growth
• Intel's struggles continue, but a light at the end of the tunnel
• AMD is not doing great. The time for AMD to gain on Intel is coming to a close
Windows
• Canary: Voice Clarity comes to more PCs, and Microsoft previews new/old Windows Setup first-run experience
• Dev: Minor bug fixes only
• Beta: Snap Layout suggestions, new settings in Widgets, and you can now revert to stable (!!)
• Chrome is finally coming to Windows on Arm. A new era?
• Microsoft Edge 121 adds several new features
• OneDrive gets a new design on the web
Microsoft 365
• Teams goes down for the count, making us realize how much we hate Teams
AI
• Microsoft adds porn deepfake guardrails to Designer AI. So, this wasn’t there before now?
• FTC is investigating Microsoft/OpenAI and other Big Tech AI partnerships
• NVIDIA RTX Video HDR can now convert SDR video to HDR
Xbox
• Microsoft can finally bring Xbox Cloud Gaming to the iPhone (and Fortnite is coming back to the iPhone in the EU)
• Xbox president joins the chorus of complaints around Apple’s EU DMA non-compliance compliance
• Xbox Series S screenshots will be restricted to Full HD
• 1900 layoffs at Activision Blizzard, Zenimax, and Xbox
Tips and Picks
• Tip of the week: Upgrade to passkeys if you use Google Password Manager and a Pixel device
• App pick of the week: Insync
• RunAs Radio this week: Software Licensing in 2024 with Mary Jo Foley
• Brown liquor pick of the week: Dailuaine 16 Flora & Fauna
Hosts: Leo Laporte, Paul Thurrott, and Richard Campbell
Windows Weekly episode 866
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