Supply-chain pressures also will continue to impact Microsoft’s Xbox gaming consoles and PCs made by its partners, company officials conceded. Hood told analysts to expect Windows OEM revenues in Q1 FY22 to decline mid to high single digits and Surface revenue to decline by low teens. The Q4 numbers released today had Windows OEM Pro revenues down two percent compared to the year-ago quarter and non-Pro (consumer) OEM growth off by four percent. Supply-chain constraints don’t seem to be impacting how quickly Microsoft can continue to build out its cloud footprint, however. Hood and other officials expect Microsoft to continue to grow its commercial cloud businesses, including Azure, Office 365 and Dynamics 365. Azure was up 51 percent (from some undisclosed base number) for the quarter and Dynamics 365 was up 49 percent from some undisclosed base — its third consecutive quarter of growth.
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