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Windows OEM licensing revenue declined by 39%.

Surface (Devices), however, was hit a bit harder.

Surface Pro 9 new colors

And with no Surface Duo 3 in the portfolio to launch, there was undoubtedly less excitement.

Xbox and gaming also took a big hit, with a13% declineyear-over-year in revenue.

Search (Bing) and news advertising revenue grew 10%, driven by higher search volume.

FY23 Q2 results More Personal Computing

In more positive news, Microsoft Clouds revenue was $27.1 billion, up 22% year-over-year.

Azure revenue grew 31% driven by strong demand for our consumption-based services.

Well update this post with Microsofts outlook for More Personal Computing for FY23 Q3 during the investor earnings call.

Microsoft CFO Amy Hood.

Nonetheless, Microsoft must refocus on Surface to deliver more cutting-edge hardware.

Surface Pro 11

Surface Laptop 7

Surface Laptop 7

Surface Pro 11

Surface Laptop 7

Giant Surface Laptop

Microsoft Surface Pro 11 with Qualcomm Snapdragon X Elite

Marathon gameplay reveal

U.S. President Donald Trump speaks during the United Nations General Assembly seen on a laptop computer in Hastings on the Hudson, New York, U.S., on Tuesday, Sept. 22. 2020.

Lenovo IdeaPad 5x 2-in-1 deal

Promotional screenshot of characters from Zenless Zone Zero

MSI Claw 8 AI+ propped up next to an ROG Ally X on a table.