Microsoft CEO: Vista Forecasts Too Aggressive

Microsoft Corp. Chief Executive Steve Ballmer said Thursday analysts' forecasts for revenue from Windows Vista in fiscal 2008 were "overly aggressive." Ballmer's comments come two weeks after the world's largest software maker released Vista, the upgrade to its ubiquitous Windows operating system, and predicted that consumers will move to Vista faster than past Windows upgrades. In a strategy presentation to analysts, Ballmer said Vista will create a "small surge" in PC sales in fiscal 2008, but would not spur a big increase over normal growth rates.

"Some of the revenue models and revenue forecasts I've seen out there for Windows Vista are overly aggressive," said Ballmer. "I don't think that much new money will race out of the consumers pockets into PCs." In January, Microsoft made available Windows Vista after more than five years of development and numerous delays. Windows runs on more than 95 percent of the world's computers and represents the company's biggest profit driver. The Windows franchise is the centerpiece of Microsoft's business, because the company makes more than 75 cents in operating profit for every dollar of sales. The cash flow generated by Windows allows Microsoft to make investments in new business like digital music players and online services.

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News source: CRN

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