Key Takeaways
- Microsoft Azure suffered a major outage due to a configuration error, disrupting global services.
- Affected companies included Alaska Airlines, Heathrow Airport, NatWest, Vodafone UK, Starbucks, and Costco.
- Xbox Live and Minecraft were among Microsoft’s own services impacted.
- Microsoft estimated a significant financial impact, with gaming losses alone around $1.2 million per hour.
A massive Microsoft Azure outage crippled critical IT infrastructure for global companies and services on Wednesday, locking millions out of essential platforms. The hours-long disruption, which Microsoft attributed to an “inadvertent configuration change,” affected everything from airline check-ins and banking to retail and online gaming.
Widespread Service Disruption
The outage had an immediate global impact. In the aviation sector, Alaska Airlines reported disruptions to customer check-in services and its primary website. London’s Heathrow Airport website was also temporarily inaccessible.
The failure extended to financial and retail giants. Services for UK institutions like NatWest and Vodafone, along with US-based Starbucks and Costco, were rendered unusable. Millions of gamers were locked out of Xbox Live and Minecraft, with game studios like Obsidian Entertainment confirming the unavailability of Azure-hosted games.
Cause and Resolution
Microsoft engineers identified the root cause as a configuration error within a segment of the Azure cloud infrastructure. To mitigate the fault, the company performed a rollback to a “last known good state.” After extended monitoring and troubleshooting, Microsoft confirmed late Wednesday that issues from the configuration change were fully resolved.
Financial Fallout and Market Impact
Despite services being restored, the incident resulted in a significant financial fallout. An analyst from Support My Website estimated the cost to Microsoft’s gaming division alone was approximately $1.2 million per hour. This figure does not include the massive losses sustained by the numerous third-party businesses taken offline.
With nearly 20% of the global cloud market running on Azure, this outage highlights the fragility of modern digital ecosystems. The Azure failure occurred just a week after a separate cloud issue plagued Amazon Web Services (AWS), affecting several other global companies.



