MBD revenue increased, due to overall increased sales of the Microsoft Office system, as well as the recognition of $101 million of revenue related to Office Pre-Sales and a net $92 million of revenue related to the Office Upgrade Offer. Business revenue increased $477 million or 10%, reflecting growth in multi-year volume licensing revenue and a 13% increase in Microsoft Dynamics revenue. Consumer revenue was flat, reflecting the recognition of revenue related to the Office Deferral, offset in part by the impact on revenue of a decline in the x86 PC market.
MBD revenue for the three months ended March 31, 2013 included an unfavorable foreign currency impact of $114 million.
MBD operating income increased, due mainly to revenue growth, offset in part by higher sales and marketing expenses. Sales and marketing expenses increased $126 million or 13%, primarily due to increased advertising, fees paid to third-party software advisors, and cross-platform marketing activities.