Saving Microsoft’s Profits

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Despite a $1 billion repair charge for all faulty XBOX 360s, Windows and Office managed to raise Microsoft’s revenue to the $50 billion mark. Their fourth-quarter profit was a hefty $3.04 profit. Though the XBOX charge took 8c off every share, it left shareholders with 31c a share, compared to 28c last year.

Much of the good news came from the traditional profit areas; with it’s Business Division’s profit rose up to 19%, to $2.9 billion, thanks to Office 2007.

However, the huge loss was the Entertainment and Devices division; where it posted a $1.2 billion loss, nearly three times the expected $423 million loss last year. That was expected. As well, there was a 10% percent drop in revenue.

As well, it managed to sell 11.6 million XBOX 360s, 0.4 million short of it’s 12 million goal. The division, however, managed to sell 1 million of it’s Zune Player.

The Online Services division continues to go with the flow, with advertising sales up 33% and Windows Live’s market share is rising and managed to post a 19% revenue from last year. But, spending on data centres and employees made it’s profits dive to 28% to $239 million, compared to last year.

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