Microsoft's Profit Down 18% - The UpStream

Microsoft's Profit Down 18%

posted Saturday Oct 24, 2009 by Scott Ertz

Microsoft's Profit Down 18%

Microsoft's fiscal year is a little weird, but Quarter 1 has ended for them, and they announced their earning for Q1. There is some good news and bad news. The bad news is Microsoft lost 18% net profit compared to last year. The good news is Entertainment and Devices (Xbox, Zune and hardware) doubled its income from last year.

The major source of loss for the company was lower than usual computer and Windows sales in high anticipation of Windows 7. Now that Win7 has launched, that number will surely rise again. On the other hand, the launch of the ZuneHD and the new lower price on the Xbox 360 clearly led to a great quarter for that department.

Microsoft's CFO, Chris Liddell, said,

We are very pleased with our performance this quarter and particularly by the strong consumer demand for Windows. We also maintained our cost discipline, which allowed us to drive strong earnings performance despite continued tough overall economic conditions.


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