Microsoft doesn’t need Windows anymore

Windows now accounts for a mere 10% of the company’s revenue. You might not have seen this coming, but Microsoft did.

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When you think of Microsoft, what product first comes to mind? Windows, you say? How quaint.

Yes, you’re probably reading this on a Windows-based PC, but Windows itself matters less and less to Microsoft. Ed Bott recently broke down Microsoft’s latest 10-Q, its quarterly report to the Securities and Exchange Commission. What he found out about how Microsoft is making money these days is very interesting.

Do you think that Windows is number one in bringing in the cash? It’s a reasonable assumption. Windows for years was the undisputed cash cow for Microsoft, and the company just rolled out a new version, Windows 10, that has been deemed a great improvement over its immediate predecessor, Windows 8. But the assumption is wrong. The biggest cash generator for Microsoft in the fourth quarter of 2015 was its server and cloud divisions.

So Windows must have been number two, right? No, that was gaming. There are a lot more Xboxes out there than you might think, and don’t forget that Microsoft recently bought Mojang, makers of Minecraft.

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