We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,259 News Articles

Microsoft income drops despite strong Windows sales

The Xbox and entertainment business slips

Microsoft has reported a drop in net income after poor entertainment sales but saw good Windows adoption.

The firm's first quarter revenue hit $17bn, a six percent increase compared to 2011. However, its net income dropped slightly to $5.11bn - lower than last year's $5.23bn but higher than expected.

Windows 8 is due to launch later this but adoption of Windows 7 has been strong so far this year. The Windows and Windows Live Division recorded a four percent increase in revenue to $4.6bn.

Unfortunately its Entertainment department saw a large 16 percent drop in revenue to $1.62 with poor sales of its Xbox 360 console in a 'soft gaming console market'.

The server and tools and business divisions saw good growth of 14 percent and nine percent, respectively. Revenue came in a $4.57bn and $5.81bn, respectively for these sectors.

"We’re driving toward exciting launches across the entire company, while delivering strong financial results," said Steve Ballmer, CEO of Microsoft.

"With the upcoming release of new Windows 8 PCs and tablets, the next version of Office, and a wide array of products and services for the enterprise and consumers, we will be delivering exceptional value to all our customers in the year ahead."


IDG UK Sites

Samsung Galaxy S5 mini vs HTC One mini 2 comparison review: Design and price beats additional...

IDG UK Sites

Why local multiplayer gaming is rapidly vanishing: we look at the demise of split-screen and LAN...

IDG UK Sites

Colour-depth not resolution is what will make 4K a success or failure

IDG UK Sites

iPhone 6 vs iPhone 6 Plus: Which new iPhone 6 model should I buy?