Jul 232009

Pity poor Microsoft.  Coming off the heels of Apple’s record-setting quarter, Redmond…well…

Got absolutely annihilated.

Microsoft whiffed on analysts’ predictions to the tune of one and a quarter billion dollars.  The traditional sinks – online services and the Entertainment and Devices group (Xbox 360, Zune and mobile phone software) – continued their crimson streak in the books while the money-printing Windows and Office monopolies experienced sharp declines.

Microsoft Chief Financial Officer Chris Liddell stated “there are some signs that we’ve seen the worst” from the economy, and that, “the spending environment is stabilizing on a sequential basis.”  There’s a recession?  Guess the economy doesn’t affect us all the same way, does it Chris?

Enjoy the schadenfreude, Macheads.

  2 Responses to “M$’s Q4 Financials Put the “Ow” in “Wow””

  1. With the impending release of not only Windows 7 but the new version of Office as well, wasn’t a sharp decline in revenues based on people “holding off” until the new products come out expected?

    Also, have any breakdown on the entertainment division report? I’d like to see if the Xbox swung to a huge loss or if it was the Zune that dragged them down (not that any of us enjoy playing our Xboxes, mind you) =D

  2. I’d go one further and say that half the people who are going to use 7 already have it installed as an RC. People don’t buy boxed versions of Windows anyway – they just get a new computer. I think their Windows unit is getting killed because the boxes that are moving (well, the ones that don’t say “Designed by Apple in California” on them) are XP netbooks, which they’re practically giving away.

    M$ doesn’t break down the performance of individual lines in their entertainment division, which includes “Xbox 360 console and games; Xbox Live; Zune; Mediaroom; numerous consumer software and hardware products (such as mice and keyboards); Windows Mobile software and services platform; Windows Embedded device operating system; Windows Automotive; and Surface computing platform.” It’s not uncommon for companies – even Apple – to bundle products so that unit sale data is tougher to obtain. In Microsoft’s case, maybe to keep their board from making recommendations about which puppy to drown? 😉

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