With hovering cloud revenues, plunging Windows and gadget revenues, and some days into a considerable layoff, Microsoft’s first-quarter outcomes really feel a bit like a quote from Dickens.

The better of occasions: “The next major wave of computing is being born,” as Microsoft reported 31 % income development in its Intelligent Cloud enterprise, a day after Microsoft invested again in OpenAI and its chat service, ChatGPT. (ChatGPT will run on high of Microsoft’s Azure cloud.) The worst of occasions: Windows OEM income sank 39 %, because of a tanking PC market; Microsoft’s Devices (Surface) income fell the identical quantity, because of points launching merchandise, decreased demand, and success a 12 months in the past.

In the tip, all of it form of got here out within the wash, nevertheless, with internet revenue down 12 % to $16.4 billion and income sinking 2 % to $52.7 billion. Microsoft reported $14.2 billion in income in More Personal Computing, its client enterprise, down 19 %, however 18 % development to $21.5 billion in Intelligent Cloud and seven % development in Productivity and Business Processes, Microsoft’s Office enterprise.

For Microsoft’s client enterprise, nevertheless, the quarter was considered one of Microsoft’s worst. Not solely did Devices (previously known as Surface) income sink by greater than it has in years, Microsoft mentioned that the corporate had issues launching sure undisclosed Surface units. Xbox {hardware} income sank by 13 %, too. According to Microsoft chief monetary officer Amy Hood, the drop in Windows OEM income was anticipated, because of a drop in PC sales that Gartner ranked because the worst ever.

Microsoft chief govt Satya Nadella targeted on the long-term positives, saying that “the next major wave of computing is being born as we turn the world’s most advanced AI models into a new computing platform.”

“The age of AI is upon us and Microsoft is powering it,” Nadella added.

Nadella additionally mentioned that Microsoft could be making use of AI to its Power platform, which permits these with no information of coding to code apps by way of a visible consumer interface. “We are making it easier for anyone to streamline repetitive tasks introducing new AI powered features to turn natural language prompts into complex workflows,” Nadella mentioned.

Microsoft, nevertheless, believes that the Windows OEM license gross sales and Surface units will see “continued declines,” Hood mentioned, with anticipated income of $11.9 to $12.3 billion, down from the present quarter. Devices income ought to decline in “the mid 40s, as we work through the execution challenges noted earlier,” Hood mentioned, that means {that a} forecasted drop of greater than 40 % within the Devices enterprise could be greater than the present quarter, too. Xbox income also needs to decline within the single digits, Hood mentioned, and Windows OEM income ought to proceed to drop within the “high 30s,” Hood mentioned, or simply underneath 40 %.

Microsoft didn’t disclose which Surface units failed to satisfy expectations, although there have been only some to select from: the Surface Pro 9, in either a 5G ARM model or with a Core chip inside; and the Surface Laptop 5. Neither, although, differed that considerably from their predecessors.

Revenue in Microsoft’s Productivity and Business Processes, nevertheless, must be up between 11 and 13 %, Hood added, pushed by Office 365.

Microsoft is “continuing to work towards closing” its Activision acquisition, Hood added.