Gadgets
Microsoft Says Supply Woes to Continue for Xbox
The company beat Wall Street expectations for its fist quarter ended September 30, with pandemic-induced demand for the software giant’s cloud-based services driving sales.
Contracts for cloud services provided by Microsoft, Amazon’s AWS, and Alphabet-owned Google Cloud have surged since last year when the COVID-19 pandemic shut offices and schools, pushing more activity online.
First-quarter revenue growth for Azure, the company’s flagship cloud-computing business, came in at 48 percent in constant currency to beat analysts’ estimates of 47.5 percent, according to consensus data from Visible Alpha. Amy Hood, executive vice president and chief financial officer of Microsoft, said that the company also expected “broad based growth” for the unit in the fiscal second quarter.
Azure’s growth rate is the best direct measure of competition with rivals such as AWS and Google Cloud as Microsoft does not break out revenue from the cloud-computing unit.
Microsoft appeared to hold off Google Cloud’s rising challenge. Google Cloud said on Tuesday its revenue surged by 45 percent to $4.99 billion (roughly Rs. 37,430 crore), but failed to live up to estimates of $5.2 billion (roughly Rs. 39,000 crore).
Revenue at the firm’s other business units that house Windows software, the Teams messaging service and LinkedIn professional social networking platform also beat analyst expectations.
The supply chain issues affecting much of the global tech industry had mixed consequences for Microsoft.
Hood said Microsoft has continued to increase its cloud computing margins despite higher data centre construction costs because it keeps adding more profitable services to those data centres. Hood also said that the company was able to ship more Xbox S and X gaming consoles than it expected in the first quarter – sales of gaming consoles and accessories were up 166 percent as the company continued to see strong demand for new models after the pandemic forced millions to seek entertainment at home.
But Microsoft and its rivals have been unable to keep up with demand because of the global chip crunch. Hood told Reuters the company expects Xbox demand to continue to exceed supply in the company’s second quarter, which includes Christmas.
She also said that sales of the company’s Surface computers, which declined 17 percent in the fiscal first quarter, were likely to keep sinking in the second quarter, with supply chain shortages hitting premium items in the lineup.
Microsoft’s revenue from selling Windows to PC makers grew 10 percent year over year, beating the overall PC market, which only grew 3.9 percent over the same period because of supply constraints, according to data from IDC.
Hood said that the company was able to outperform in the PC market because of its strength in selling licenses for Windows destined for corporate customers, where it gets more revenue per license and has better market share.
Overall, revenue rose 22 percent to $45.32 billion (roughly Rs. 3,39,990 crore) in the first quarter ended September 30, beating expectations of about $43.97 billion (roughly Rs. 3,29,800 crore).
Net income rose to $20.51 billion (roughly Rs. 1,53,840 crore), or $2.71 (roughly Rs. 200) per share. The company said its results included a $3.3 billion (roughly Rs. 24,750 crore) net income tax benefit.
On an adjusted basis it earned $2.27 (roughly Rs. 170) per share, trumping analyst expectations of $2.07 (roughly Rs. 155) per share.
For the fiscal second quarter, Microsoft predicted a midpoint of $18.23 billion (roughly Rs. 1,36,720 crore) in revenue for its intelligent cloud business for the fiscal second quarter, above estimates of $17.84 billion (roughly Rs. 1,33,770 crores), according to Refinitiv data.
First-quarter revenue from “Intelligent Cloud” surged 31 percent to $17 billion (roughly Rs. 1,27,470 crore). Analysts had expected a figure of $16.58 billion (roughly Rs. 1,24,325 crore), according to Refinitiv data.
Microsoft’s forecast for its software app and Windows centric segments with midpoints of $15.83 billion (roughly Rs. 1,18,700 crore) and $16.55 billion (roughly Rs. 1,24,090 crore), respectively, were also above Refinitiv estimates of $15.40 billion (roughly Rs. 1,15,470 crore) and $15.51 billion (roughly Rs. 1,16,290 crore).
© Thomson Reuters 2021
Gadgets
Microsoft Partners With Inworld to Bring AI Game Development Tools to Xbox
“At Xbox, we believe that with better tools, creators can make even more extraordinary games,” Haiyan Zhang, GM, Xbox Gaming AI, said in a blog post. “This partnership will bring together: Inworld’s expertise in working with generative AI models for character development, Microsoft’s cutting-edge cloud-based AI solutions including Azure OpenAI Service, Microsoft Research’s technical insights into the future of play, and Team Xbox’s strengths in revolutionizing accessible and responsible creator tools for all developers.”
The aforementioned AI design copilot is a toolset that will help game designers turn prompts into scripts and dialogue trees. In contrast, the character runtime will enable dynamically generated plot beats and quests. We’ve already seen heavy AI integration in games by way of procedural generation — a more recent example being the 1000+ planets in Starfield. Not to mention, enemy AI has been around for way longer.
Inworld made headlines in August when it launched a modded story mode for Grand Theft Auto V, Sentient Streets, in which players had to investigate the rise of a bizarre AI-worshipping cult — a segment loaded with characters that spoke in AI-generated dialogue, on the fly. The mod was later taken down by publisher Take-Two, leaving a permanent strike on the creator Bloc’s YouTube channel. As per The Verge, Inworld’s AI technology can also be used for narration in top-down RPGs to warn players about any events awaiting off-screen and respond to questions like we’ve seen in the past year with AI chatbots like ChatGPT and Bing Chat. Microsoft has also been heavily banking on artificial intelligence, having made a $10 billion (about Rs. 83,254 crore) investment in OpenAI. The company has also integrated AI tools into its popular suite of services and also added an AI copilot to Windows.
Despite being a Microsoft-affiliated AI toolset, it would be interesting to see whether titles using them will be allowed to thrive on other platforms. In July, Valve claimed that it would be cracking down on games that included AI-generated assets if the developer didn’t own the copyright to the piece of art. For the uninitiated, when you insert a prompt to create something in AI, the software simply repurposes existing assets found online and mushes them together — basically stealing from other artists and writers without appropriate commercial licenses. Infringing them would lead to the game not being distributed on Steam, forcing the developers to seek proper licenses for the asset by reaching out to the AI companies involved. It’s unclear how Microsoft’s partnership will play out — as long as AI content is being used as a catalyst to innovate and create something new, it should be fine.
Gadgets
BSNL Offers Free 4G SIM Upgrade: Here’s How to Get It
In a post on X shared by BSNL’s Andhra Pradesh (@bsnl_ap_circle) unit, the company confirmed that BSNL users can upgrade their older 2G or 3G SIMs to a 4G SIM for free. Not only will the upgrade be free, but a promotional image shared with the post suggests that users who opt for the upgrade will also receive 4GB of free data that will be valid for three months. It is speculated that BSNL is aiming to boost its upcoming 4G services with this offer. The announcement was first spotted by Telecom Talk.
To access the free data offer and the free upgrade, BSNL users are requested to get in touch with executives at BSNL’s Customer Service Centre, franchisee or retailer stores, or contact one of their Direct Selling Agents (DSA). The promo image also adds in a finer print that the offer is available with certain terms and conditions, but hasn’t detailed any, so far.
Reliance’s Jio recently launched the 4G-supported Bharat B1 feature phone in India. The handset is priced at Rs. 1,299 in India. Alongside 4G connectivity, the phone comes with JioCinema and JioSaavn applications pre-installed.
The Jio Bharat B1 is equipped with the JioPay application, which is said to allow users to make UPI payments. Aiming to increase accessibility, the phone supports 23 languages overall, including multiple regional languages.
Gadgets
Realme GT 5 Pro Teased to Feature 3,000 Nits Display; More Details Revealed
Realme, via Weibo, announced the arrival of the Realme GT 5 Pro in China. The display of the handset is confirmed to offer 3000 nits peak brightness. It has also been teased to offer heat dissipation with a surface area of around 10,000mm2. It is confirmed to ship with Qualcomm’s new Snapdragon 8 Gen 3 SoC. The post doesn’t specify the exact launch date of the smartphone, however, given the release of the teasers, the launch could be just around the corner.
The Realme GT 5 Pro has been in the news a lot lately. It is expected to feature a 6.78-inch (1,264×2,780 pixels) AMOLED display and is tipped to come in 8GB, 12GB, and 16GB RAM options along with 128GB, 256GB, 512GB, and 1TB inbuilt storage options.
For optics, the Realme GT 5 Pro is said to have a triple rear camera unit comprising two 50-megapixel sensors and an 8-megapixel shooter at the rear. The camera setup might include a Sony LYTIA LYT808 sensor, an OmniVision OV08D10 secondary sensor, and a Sony IMX890 telephoto sensor. For selfies, there could be a 32-megapixel sensor at the front. It is said to carry a 5,400mAh battery with support for 100W wired charging and 50W wireless charging.
The Realme GT 5 Pro is expected to come with upgrades over Realme GT 5. The latter was launched in China in August with a price tag of CNY 2,999 for the base model with 12GB of RAM and 256GB of storage.
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