How does Microsoft make money?

Microsoft makes money through the sales of its products. Microsoft has a wide variety of technology-based products that it sells. This is where the tech company sees most of its revenue generation come from. Here is a closer look at some of the different types of products Microsoft sells to make money:

• Digital devices

  Microsoft sells laptops, desktops, tablets, and other digital devices through its online store. Microsoft owns Dell which also produces a wide array of digital devices. The sales revenue Microsoft gains from this area of its business is significant.

• Operating systems

  Microsoft also generates profits through the sale of operating systems used on laptops, desktops, tablets, and other digital devices. The company has a long history in this area of product sales.

• Software

  Microsoft has long held the standard title for productivity tools in software with their extremely popular programs like Microsoft Word and Microsoft Excel, which are both included in the bundle of Microsoft Office. In the past these software tools were bought as a package, now they are bought purely online with certain ones requiring yearly subscriptions.

• Gaming platforms

  Microsoft has also been in the video game market for some time now. It has participated in PC gaming and also has had huge financial success with its home video gaming console Microsoft Xbox. The profits Microsoft sees from its video game division are immense.

• Consumer and business sales

  Microsoft is a huge technology company in the consumer market with all of the products and product lines just mentioned. Their retail sales are extremely high, but Microsoft also makes a considerable amount of revenue through the sales of its products to corporate markets. Many businesses rely on Microsoft technology for a whole host of needs, making it very profitable.