Microsoft profits fall in Q1

Xbox fans helped propelled Microsoft's business during its latest quarter as the repercussions of last year's Windows Vista launch continued to be felt. For the three months to March 31, Microsoft reported a 10.9 per cent drop in net income to $4.3bn, factoring in the EU's anti-trust fine of $1.42bn, on revenue that grew less …

[Pierre]

Crow soup anyone?

140 M licences - pre-installed systems I bet. How many "downgrades" to XP, again? How many dual-boot machines with Vista not being actually used?

OK, I'm a penguin fanbuoy, but you have to admit that something is rotten in the kingdom of Redmond... to be or not to be the future of personal "computing", that is the question.

Now where is the Shakespeare icon?

[Greg]

Quick correction, knowing Microsoft

"Microsoft claimed 140 million licenses of Windows Vista sold."

Should be

"Microsoft claimed 140 million licences shipped to distributors."

[BlueR@nger]

Downgrade?!?

From my experience anything that makes a computer run faster, improves stability and compatability with other hardware and applications is an Upgrade.

You'd think that M$ would have learned after the windows millenium fiasco.

[Anonymous Coward]

So about 3.4B Euros to 2.66B Euros

Well gee, whats that in real money? Ahh a drop of 40%.

Microsoft have lots of sales outside the US, the slide in the US $ hides the extent of the drop in their profits I reckon.

[Anonymous Coward]

Re; Quick correction...

Agreed. Also working in IT wit many big companies, I noticed some trend, which is obvious to everybody, except MSFT. All companies upgrade to XP. Nobody wants Vista as it doesn't add anything to the business. Actually it only introduces some new learning curve both for staff, as well as, for IT.

Funny thing I heard is that managers are little scared that this shiny Aero stuff will lower staff productivity and push them to browse Internet.

Anon for obvious reasons.

[TC]

Pointless comments

They were hit with a huge fine which impacted profits on stable sales - though I don't think 40% is correct math

[Steven Hewittt]

Hmmm

It's weird that last year people were very quiet on MS's "best quarter ever", which MS put down to Xbox and Windows client. (Vista). Yet now they bring in less cash than before and it's all due to Vista being crap.

Well I have some news people - Vista is being installed. People are using it, believe it or not - some people are even enjoying it!

The EU fine aside, you need to remember what your saying.... MS sell XP for the same price as Vista. (In relation to the version). So if more OEM Windows sell, MS makes money. It doesn't make a difference if it's Vista or XP - as MS still make a pretty $$$ out of each licence sold.

[Giles Jones]

Re: Hmmm

>The EU fine aside, you need to remember what your saying.... MS sell XP for the >same price as Vista. (In relation to the version). So if more OEM Windows sell, MS >makes money. It doesn't make a difference if it's Vista or XP - as MS still make a >pretty $$$ out of each licence sold.

It's not quite that simple though. If Vista isn't popular then people won't upgrade, many are on XP and have no reason to upgrade their hardware and therefore won't buy any.

Of course Microsoft knew what they were doing when they placed a 5 activations limit on XP. Deliberately preventing people sticking with the same XP licence after 5 PC changes.

[Ishkandar]

Oh dear, poor, poor Microsoft !!

I'm sure they'll do better next quarter when Mr. Ballmer has thrown more furniture through those plate glass windows !!

[Slaine]

my heart bleeds for M$

... oops, no, sorry; I just spilt some jam.