We again grew Windows non-Pro licenses and saw year-over-year growth in activations, this was driven by particularly strong demand for opening price point PCs related to the strategic decisions that just spoke of earlier. The hybrid mix shift to opening price point PCs impact the license mix and therefore aggregate revenue per license in the quarter. The mix shift was the main driver of our Windows non- pro revenue decline. Inventory in the channel is a bit higher than normal which we expect to work through in Q3. Office consumer products and services revenue declined 12% and was impacted by the ongoing transition to Office 365 and by the dynamics in Japan. Our PC growth was lower than we expected in a geography where the paid attach to Office is high. Adoption of Office 365 Home and Personal remained strong and we now have over 9.2 million subscribers.
In our computing in gaming segment we are proud of the continued progress we’re making in our Surface portfolio. Strong interest in Surface Pro 3 helped to drive record revenue as well as improved gross margin, Surface Pro 3 volumes are pacing over three times the rate of what we saw for Surface Pro 2. In gaming, Xbox One was the console sales leader in the US, Xbox live users grew and those users increase their purchases as third party publisher content and consumable. Sales of the Xbox platform exclusive Halo, The Master Chief Collection and Forza Horizon 2 were strong and this quarter we welcome Minecraft.
We articulated our plan for the phone business back in July and we are executing to plan. With our Lumia portfolio as phone we are driving volumes in the low priced device category, we sold 10.5 million Lumia phones this quarter, an all-time high. We also sold over 39 million non-Lumia phones even while we make changes to the product portfolio and manage this business for profitability. We are looking forward to bring new products to market that will showcase the features that we presented at our Windows 10 event last week. Revenue on our devices and consumer other segment grew 30%, as those of earlier Xbox Live transactions and first party games performed well and contributed to this growth, additionally search revenue growth were strong with improvements in both rate and volume. Within display, revenue declined on MSN portal tough we saw revenue growth across other Microsoft properties.
We are also pleased by our growth margin expansion in this segment. Transitioning now to our consumer results, our revenue grew 5%, our annuity revenue remained strong growing double-digits and renewal rates remained high, customers are continuing to move from transactional purchasing to long-term annuity contracts as they show an increased commitment to our product roadmap. Our transactional revenue declined over 15% slightly more than we expected primarily in office and mostly due to our performance in China and Japan which I detailed earlier. Additionally FX had a greater negative impact on commercial revenue than we had anticipated. Our commercial cloud services delivered triple digit revenue growth for the sixth consecutive quarter, Office 365 continues to be priority for CIOs as both existing and new customers move to the cloud. This transition accelerated with 45% of our renewal season office moving to cloud this quarter.
We are seeing great growth in revenue from premium azure services driven by both the increasing customer base and an expansion in the number of services that those customers deploy. Within [inaudible] online customer growth accelerated and revenue nearly doubled. For our product perspective, commercial office product and services revenue declined 1% slightly below our expectations. Annuity revenue remained strong with higher renewal rate and continued adoption of Office 365. Within our Office transactional business year on year comparable are difficult given the benefits from last year’s XP refresh where customers chose to update their desktop productivity solutions along their PC. Additionally the shift off to Office 355 continues to impact transactional revenue. While these dynamics were consistent with our expectations revenue in China and Japan both fell short given the factors that I noted earlier.
