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Microsoft reports Windows sales dropping as Xbox surges

Gamers pick up Windows slack
Fri Jul 22 2011, 12:48

SOFTWARE FLOGGER Microsoft announced an increase in profits, however it saw its Windows and Windows Live division suffer a decline in revenue.

Microsoft announced it raked in $17.37bn during its fourth quarter of fiscal 2011, which brought full year revenue up to $69.94bn. On the face of it those figures look great, with steady growth in revenue and quarterly profit rising 30 per cent to $5.87bn and full year profit rising an equally impressive 23 per cent. But dig a bit deeper and you notice that Microsoft's showcase product, Windows, is not doing too well.

Microsoft's Windows and Windows Live division reported a one per cent drop in revenue for the fourth quarter with full year revenue falling two per cent. Microsoft's attempt to gloss over these less than satisfactory results was to say that if the Windows 7 launch effect was taken out of last year's financials, then the firm would have enjoyed two to four per cent growth. Perhaps that is a sign that Microsoft shouldn't release new versions of Windows if it wants to sustain revenue growth.

While Microsoft's Windows division had a rough year, its Entertainment and Devices division had a bumper year. That business, which covers the firm's Xbox gaming activities, saw its revenue grow 30 per cent in the fourth quarter and 45 per cent over the prior year.

Microsoft's Xbox and Xbox Kinect have undoubtedly become successes for the firm, with the latter energising interest in Microsoft's console and, according to the firm, set a world record for the fastest selling consumer device ever. Sales hyperbole aside, there's no doubt that Microsoft's decade long effort with its Xbox console is starting to reap rewards to claw back its losses in several early years.

However for Microsoft the stagnation of its Windows operating system will be a concern. Microsoft said that weak PC sales were to blame, but with smartphones and tablets here to stay, it will have to hope that its Windows 8 for ARM architecture will be a big success. Otherwise the Redmond software company might have to get used to reporting flagging Windows sales. µ

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Comments
The Majority Likes Windows

"don't forget they spy on you and do others police work" - Yes - thanks for reminding us that unlike Microsoft, Apple track and record everywhere you go on their phones with no opt out or warning.

1% revenue drop for 1 quarter during a global recession sounds like a pretty good performance to me.

And they are simply kicking Sony's arse in the console market. Kinect is walking all over the glow in the dark dildo that Sony are selling as a controller.

posted by : TDR, 24 July 2011 Complain about this comment
Sell your stock for doom is nigh

ONE PERCENT DROP? Seriously that's catastrofic. Whatever will they do with the other 99% of sales.

Seriously, grow up.

posted by : Jose Gomez, 23 July 2011 Complain about this comment
Gamers are fleeing the PC market...

Why? because it sucks.

For 1 upgrade on your gaming pc, you can have a game console. Why keep pc gaming alive when a console does everything you want it to. Why deal with patches and cheaters when the easy solution is there?

Case in point- Magicka. That damned game crashes on me all of the time. Why waste time with it when a console JUST WORKS?!

posted by : viscountalpha, 23 July 2011 Complain about this comment
My coment was meant for destops

You are still very limited in what you can get in a laptop. I just get the feeling the quality is not what is was a few years ago. Higher price does not always equate to longer life.
Mac used to have better laptops than some.but that might not be true anymore

posted by : Scott, 22 July 2011 Complain about this comment
Better hardware?

I suppose pointing out that OS X is based on BSD, which is free is also out of the question? OS X is alright, but it's just an OS. Macs are just computers, they also run Windows fine, alongside Linux. In fact, recent refresh apart, Macs are usually a generation behind Windows pc's in many ways.

posted by : Ade, 22 July 2011 Complain about this comment
@ Scott

"Not only do I get better hardware but I get what I want instead what dell or someone else want to sell my."

You do realise that by buying a Mac you only get what Apple want you to have don't you? And you also realise that there are other manufacturers other than Dell out there?
And I take it you are aware that Dell and other manufacturers would likely offer OSX as an option if Apple licensed their OS to 3rd parties?

Just checking.

posted by : Me, 22 July 2011 Complain about this comment
Some people like windows

And that's ok with me. I plan to never pay for it again,I find Linux no 1 and Os x number 2. I will buy a mac laptop and continue to build my desktops. Not only do I get better hardware but I get what I want instead what dell or someone else want to sell my. I really detest buying a computer and paying for a OS I really don't want. Plus I think the overall quality of computers is not as good as they used to be. In my opinion Windows 7 is still a can of worms at best,slow and unfinished and don't forget they spy on you and do others police work.

posted by : Scott, 22 July 2011 Complain about this comment
aboutus
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