After reporting a net income of $6.63 billion in their reports of the second fiscal quarter, not too many companies would be able to say that they had not hit their goals. But when you're Microsoft there's a different standard, even that amount of loot has a few things on the inside that could show downward trends.
The biggest winner for Microsoft was their Entertainment Division, which handles the Xbox 360 and the Kinect which helped that division grow its earning by 55%. The downward trend for Microsoft was actually their Windows OS, which missed their forecasts by nearly $300 million despite selling over 300 million licenses for Windows 7. The emergence of tablets and smartphones are cutting into the sales of products like netbooks and even PCs along with the Windows licenses that go with them.
While Windows grossed over $5 billion in revenue, there was a 30% drop in sales compared to a year ago. Then again, Windows 7 was a lot fresher product then. Microsoft is banking on Windows Phone 7, which is reporting high customer satisfaction rates, continuing to grow and products like Office which saw a 24% rise in revenue over last year, to pick up some of the slack that Windows is leaving.