Microsoft's Last Financial Quarter Could've Used a Service Pack

Illustration for article titled Microsoft's Last Financial Quarter Could've Used a Service Pack

Results for last quarter are in, and with revenues reported well below already cautious estimates, it was a nasty few months for Microsoft. It's almost as if they're sitting on new generations of products in every single space they inhabit.

Advertisement

But analysts were well aware of Microsoft's cage of not-quite-released hardware and software, and their revenue estimates were still more than a billion dollars long. Months that were supposed to see $14.3bn pass through the company's accounts ended with just $13.1bn, which is a full 17% down from the same quarter last year. That globbed onto an also-tough Q3 to round out their financial year with a 3% decline in revenue overall—the first time they've seen a yearly decline in company history.

A section-by-section breakdown bears out the "give 'em some time" theory: Entertainment (Xbox and Zune), client software (Windows and Office) and mobile software lagged, suffering a sort of lame duck lethargy as they waited for their respective next generation products. That, and the fact that everyone in the world is kinda poor right now, and therefore not buying quite as many copies of Songsmith, et al.

So what did do well? No wait, first answer this: What has Microsoft actually launched in the last few months? Online revenues actually exceeded expectations, albeit by a small percentage. Way to go, Bing!

Worst of all, if it's the fact that a lot of Microsoft's products are in hospice care that's behind the poor showing, next quarter might not be much better: the company's got plenty of Things That Make Money on the horizon, but most of it's not gonna land in time to save this story from repeating itself in a few months. October 11th can't come fast enough. [Business Insider, Techflash—p.s. Erm, hey Bill!]

Advertisement

DISCUSSION

mysecretidentity
MSI, Captain

Zune HD and Windows 7 Please. On a sad note, after nearly 2.5 years of use out of my Zune 30... it's dying. The battery only lasts about 8 hours on the lowest everything, and I spilled coffee and tea on it and dropped it repeatedly. It also flew into the side of my door from where it was resting on my seat when I took a hard turn in my truck. It shuts itself off after about 2 hours of continuous use. ) : It's a sad day.Of course all of the bad things that happened to it were my fault... except the battery thing. That started before I dropped it onto concrete.