Microsoft’s Surface and Xbox hardware revenues take a big hit in Q3

Image: The Verge

Microsoft just posted the third quarter of its 2024 fiscal financial results. The software maker made $61.9 billion in revenue and a net income of $21.9 billion during Q3. Revenue is up 17 percent, and net income has increased by 20 percent.

This is the second quarter in a row that Microsoft is including its additional revenue from its Activision Blizzard acquisition that’s pushed gaming to be Microsoft’s third-largest business last quarter, above Windows. This time around, it’s back into fourth place, thanks to stronger than expected Windows OEM revenue this quarter.

Once again, Office and cloud revenues still reign supreme at Microsoft this quarter, with Microsoft Cloud revenue up 23 percent year over year.

This quarter, Windows OEM…