Over the past few years, a lot has been written about Microsoft's financial standing. Some organizations, mostly tech blogs with financial interests in Google or Apple, have said that Microsoft is old tech and is over. Others, though, especially organizations that specialize in business and investing, have said that Microsoft is about to retake the crown as kind of the tech industry.
In the midst of tech blogs announcing that Microsoft's mobile ambitions have failed, Microsoft has announced their Fiscal Year 2016 Quarter 2 (3 months ending December 31, 2015) revenue. Revenue is down slightly, but not in any percentage that matters, especially considering Microsoft didn't release a new phone until the very end of the quarter. Windows OEM revenue is pretty flat, Search Advertising and Xbox Live are growing. Those aren't the places that matter, though.
In this quarter, the Surface brand drove $1.35 billion in revenue, up from $672 million for the previous quarter, and $1.1 billion this quarter last year. That seems to indicate that Microsoft's mobile ambitions are playing out very well, not failing in the way some sites might have you believe. This is "driven by the launch of Surface Pro 4 and Surface Book," which was a big change in the way Surface was designed, marketed and sold. It seems that the revised strategy after the
merging of Lumia and Surface has been a success.
Another division driving growth for the company is their cloud strategy. Investment site The Motley Fool has said
Microsoft rules the cloud, which is a pretty accurate assessment. While companies like IBM may have some specialized APIs for things like image detection and facial recognition, Microsoft's Azure service offers developers and virtual IT managers the biggest selection of options and most robust platform available, and everyone seems to be flocking to it.
With revenue of $6.3 billion for its cloud services, it represents a 5% growth for the division. The growth is led by Azure and Office 365, which now has almost 21 million subscribers, up more than double in the past 12 months. These businesses are the biggest business shift for the company, no longer relying of the success of any Windows platform, but instead spreading the love across all platforms, meaning that even if Windows 10 had been a sales problem, which it has not, the company has a backbone to stay strong.
Microsoft's stock price rose 5% despite its declining revenue.
A little over a year ago, you may have read about
Blizzard's new FPS . The game is a little over-the-top, but looks to take on Valve's extremely popular team-based strategy shooter, Overwatch Team Fortress 2. And if you're me, you've been playing the closed beta since it went live all the way to when the devs closed it in December. We were promised the game would return for another round of closed beta testing "soon," however soon will not be coming soon enough as it looks like the next iteration of game testing will be put off for a little longer.
We were supposed to hear from Blizzard this week about the re-launch of the closed beta for
Overwatch, with rumors swirling that it would be sometimes during the last week of January. Sadly, we're now being told via blog post that the reopening won't happen for at least a few more weeks. While that may not be a long time for some, the game's exciting and refreshing experience has gamers everywhere chomping to get back to it.
While progress has been great and the team has been working super hard to get everything implemented on time, we're not quite ready to bring the Closed Beta back online just yet...Rather than try to rush a beta patch out this month (which would mean the new game mode would have to be put off), we're going to take a few extra weeks before bringing the Closed Beta back.
Now, the good news is that the team is taking the extra time to actually implement some user feedback. A new game mode in addition to Point Capture and Payload will be added in the next update. The dev team will also be working on some serious game balance issues, along with improving its core
Game Director Jeff Kaplan closed the blog post by saying the choice was easy and we should expect the game to be reopened for testing in mid-February.
Last week, Hulu
struck a deal with Sony Pictures to add more movies and big-name content to the platform. Not to be outdone, Netflix announced this week that it will be spending a large amount of its $5 billion programming budget for 2016 on children and family content, to further cement itself at the top video-streaming service.
Chief Content Office Ted Sarandos announced that Netflix is "doubling down on kids and families." As it stands, Netflix has just over a dozen original shows that are focused for children. Over the span of the next year, the company will up that number to 35 total programs.
While Netflix currently has hundreds of shows for kids on the network, most of them are acquired through their licensing deals. That was an important first step for the platform, which has a formulaic approach to targeting its key demographics. The next step, which has proven successful for Netflix, is to create new, original content in order to keep its consumers locked into the service.
Sarandos also acknowledge the challenge that the company faces on a global level. While their security team is currently
blocking VPN and proxy services, Netflix understands that its customers use those services because a lot of content isn't available outside of the US. He promised this week to focus heavily on global license agreements.
We are running a global network that is not easily comparable in business or cultural terms to anything that has come before. Every year the exclusions of different countries in our licensing agreements will become less and less.
The show titles and storylines haven't been announced yet, but Sarandos said that information would be coming in just a few weeks as the ink dries on the fresh sheets of printed paper.
In West Virginia, citizens have grown tired of private Internet service providers skirting the line of acceptable Internet speeds, reliability and consistency. In some parts of the state, there is simply no Internet solution at all outside of satellite services. In response to the restlessness, people have rallied to push for a publicly funded fiber-based Internet service. They also have legislators pushing for the infrastructure to be built to allow this to happen. Needless to say, the big private companies are completely unhappy with this idea and are looking to shut it down.
Recently, State Senator Chris Walters (R) brought to the table a bill that would have contractors lay down over 2,000 miles of fiber cable through the state. This isn't to start up a new ISP, however. Instead, this fiber network would be accessible by any ISP that wants to tap into the lines and bring service to homes in the state. As you could imagine, this could sprout dozens of small companies to bring potentially high-quality service to the areas in need, and of course the big ISPs are against the bill.
West Virginia Cable TV Association Chief Mark Polen said,
This bill would obligate the state to borrow between $75 million and $100 million, and it wouldn't guarantee that a single rural customer who doesn't have broadband service would get it. The state-financed, state-owned, and state-operated fiber network will be in direct competition with the private investments our members have made in West Virginia.
It should be noted that Polen is in charge of a group that includes Comcast, Time Warner and other popular middle-tier ISPs in the state. Frontier, who is not in the association but is found in many areas of West Virginia, have also opposed the new network. It is reported that lesser-known ISPs like Citynet and Alpha Technologies, however, are fully in favor of bringing better broadband to troubled regions and giving rural residents a reliable and affordable Internet service.
Senator Walters, in a statement, openly argued against the Cable TV Association of West Virginia.
Once we build this network, people are going to use it. If all of a sudden you have a network that affordably gets you where you want to go, you're going to use it if it makes financial sense.
Startup ISPs could surely benefit from a provided fiber system, and could more than likely pass down savings to the consumer. Bigger ISPs have backed an alternative bill that would simply hand out $1 million in tax credits to ISPs wanting to build in rural areas. The problem with that is it's only for $1 million in total, not for every ISP who wants in on the action. The Senate Transportation and Infrastructure Committee reviews both bills next week and has already shown interest in the bill introduced by Walters, who is also the chair of the Committee.