Other parts of Microsoft's business are healthier, with search advertising revenue from Bing growing 40% versus a year prior and subscriptions to the company's Office 365 software rising by 1 million to more than 5.6 million. Sales of Windows software to manufacturers rose 3%, a positive sign after years of weak PC sales.
Overall, Microsoft's sales totaled $23.3 billion, ahead of Wall Street expectations, sending shares up slightly in after-hours trading.