Microsoft Q4: Windows down, Xbox & Device divisions up

Microsoft revealed its revenues for the fourth quarter of the calendar year of 2011 and it looks like the results met with analyst's previous expectations. The company announced today that revenues came in at $20.89 billion for the quarter, which was a 5 percent increase from the same period a year ago. Net income came in at $6.62 billion for the quarter, just below the income of $6.63 billion for the same period a year ago.

The Windows and Windows Live Division generated revenues of $4.74 billion for the quarter, down 6 percent from the same period a year ago. Microsoft said in the press release that it has now sold 525 million copies of its Windows 7 operating system, with growth slowing ahead of Windows 8's impending release.

The Entertainment & Devices Division, which includes the Xbox business, posted revenue of $4.24 billion for the quarter, up 15 percent from the same period a year ago. The Redmond based company repeated what was mentioned last week at CES 2012, that it has now sold 66 million Xbox 360 consoles and 18 million units of Kinect.

The Microsoft Business Division had revenues of $6.28 billion for the quarter, an increase of 3 percent from the same period a year ago. Microsoft also said it has sold 200 million licenses for Microsoft Office 2010 software since its launch.

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17 Comments

wonder how long until someone twists this as apple is causing it! not the fact a new OS is right around the corner

Makes sense. Like the article says, Windows 7 launched a while back and sales will naturally slow down before the next version is out.

How about the online services division?

Enron said,
Makes sense. Like the article says, Windows 7 launched a while back and sales will naturally slow down before the next version is out.

How about the online services division?

Yep, just like how people hold off buying the latest iPhone or such when they know a new one is coming

neufuse said,

Yep, just like how people hold off buying the latest iPhone or such when they know a new one is coming

Which is usually about two months later.


This to me is the most interesting part. It actually illustrates the interest in Windows 8, outside the 'little' tech circle.

...sold 525 million copies of its Windows 7 operating system, with growth slowing ahead of Windows 8's impending release.

Windows 7's flagging sales is probably more due to the HDD shortage, the average consumer doesn't know Windows 8 exists yet so is unlikely to be behind it.

thealexweb said,
Windows 7's flagging sales is probably more due to the HDD shortage, the average consumer doesn't know Windows 8 exists yet so is unlikely to be behind it.

As far as I know, the hard disk shortage didnt really effect PC prices (as in fully built and on the shelf to buy PC's) - so average consumer Joe wouldnt give a dam about that either, but it may have caused enthusiasts to hold of on HDD upgrades and a few new system builds. The HDD shortage and Windows 8 would both be under the non tech users radar.

thealexweb said,
Windows 7's flagging sales is probably more due to the HDD shortage, the average consumer doesn't know Windows 8 exists yet so is unlikely to be behind it.
The HDD shortage didn't affect pre-made PC's. And the "average consumer" is more likely to know about Windows 8 than a shortage of HDD's.

thealexweb said,
Windows 7's flagging sales is probably more due to the HDD shortage, the average consumer doesn't know Windows 8 exists yet so is unlikely to be behind it.

Microsoft sold 75 million Windows 7 licenses last quarter, so it's hardly made a dent. I did listen to the shareholder podcast and the Microsoft spokesman did indicate that FY 2012 Q3 was going to be tough.

iPad killed the netbook, but it makes hardly a dent in Microsoft's earnings in the last 2 years. Somewhere in hell, Steve Jobs is slapping his forehand Homer Simpson style.

KingCrimson said,
iPad killed the netbook, but it makes hardly a dent in Microsoft's earnings in the last 2 years. Somewhere in hell, Steve Jobs is slapping his forehand Homer Simpson style.

Yes, iPads are killing Windows PC. Didn't you just read that 51% of IT managers are using iPads, daily, in enterprises ?
"Fully 51 percent of IT and business decision-makers say they always use their iPad at work"
"These findings suggest that a substantial number of professionals regard their iPad as a viable business tool", according to the study.
In the Middle East and Asia, 70 percent and 63 percent, respectively, of IT and business professionals have "partly replaced" their laptop with iPad. "In South America, 27 percent have 'completely replaced' their laptop with an iPad"

These are the people who decide what hardware to buy.

alexalex said,

Yes, iPads are killing Windows PC. Didn't you just read that 51% of IT managers are using iPads, daily, in enterprises ?
"Fully 51 percent of IT and business decision-makers say they always use their iPad at work"
"These findings suggest that a substantial number of professionals regard their iPad as a viable business tool", according to the study.
In the Middle East and Asia, 70 percent and 63 percent, respectively, of IT and business professionals have "partly replaced" their laptop with iPad. "In South America, 27 percent have 'completely replaced' their laptop with an iPad"

These are the people who decide what hardware to buy.

And because they like to use some extra toys they'll abandon all their PC's, which even are useful?

By the way, you should read more than just a few words:

KingCrimson said,

iPad killed the netbook, but it makes hardly a dent in Microsoft's earnings in the last 2 years.

Now what is your definition of killing? Not affecting something at all?

alexalex said,
Microsoft Q4 ? It is Microsoft Q2.

I think they got their own title wrong?

"Microsoft Corp. today announced quarterly revenue of $20.89 billion for the quarter ended Dec. 31, 2011, a 5% increase from the prior year period."

Neobond said,

I think they got their own title wrong?

"Microsoft Corp. today announced quarterly revenue of $20.89 billion for the quarter ended Dec. 31, 2011, a 5% increase from the prior year period."

Microsoft's fiscal year runs July-June. It's not uncommon.

Microsoft is revising operating expense guidance downward to $28.5 billion to $28.9 billion for the full year ending June 30, 2012.

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