Holiday season, Xbox One launch - it's much easier to make "revenue" off $500 hardware, than from $5 a month Office services. 4 million Xbox Ones is already an extra $2 billion in revenue, regardless of what the profit is.
I expect their revenue to continue to increase a little bit in the next quarters (YoY), as they keep focusing on selling hardware. I don't think their profits will improve too much, and might even see a decline within a few quarters, as it gets harder and harder to sell Windows 8 licenses, since most people don't like it too much, enterprise customers don't like it, and they've just announced a year and a half before release that Windows 9 is coming next year, which is pretty crazy on their part. Android and iOS will also keep affecting the sales of PCs, and therefore the sales of Windows licenses, too.
They didn't announce Windows 9. Those were tech sites just reporting on rumours. And considering that the last couple OSes have been released on 3 year cycles, mid-2015 is exactly when you would expect Windows 9 to come out.
I expect their revenue to continue to increase a little bit in the next quarters (YoY), as they keep focusing on selling hardware. I don't think their profits will improve too much, and might even see a decline within a few quarters, as it gets harder and harder to sell Windows 8 licenses, since most people don't like it too much, enterprise customers don't like it, and they've just announced a year and a half before release that Windows 9 is coming next year, which is pretty crazy on their part. Android and iOS will also keep affecting the sales of PCs, and therefore the sales of Windows licenses, too.