Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services, and solutions that help people and businesses realize their full potential.
Here is some of their online story :
Overall, a good quarter for Microsoft. Revenue was up 6% year-to-year thanks largely to the Server & Tools Division and the Business Division (read: Office).
In other words, the quarter was driven by the enterprise side of the company.
Windows growth was up only slightly (4%), but that’s probably to be expected as Windows 8 nears. And Microsoft specifically called out the strong enterprise growth there as well.
On the full-on consumer side of things… the Entertainment & Devices Division (read: Xbox) saw revenue decrease 16% year-to-year. That’s not good. While Xbox was the top-selling console for the 15th straight month, the company cited a “soft gaming console market”.
For the quarter, the division actually swung to a loss — $229 million in the red.
A new Xbox can’t come soon enough for the company. And it’s not gonna happen until next year.
But hands-down the best part of the release is this:
The Online Services Division reported revenue of $707 million, a 6% increase from the prior year period, and operating loss improvement of approximately $300 million.
“Operating loss improvement”. That’s one way to put it.
In English, the Online Services Division continues to bleed : it lost $479 million last quarter. An improvement, yes — but mostly thanks to less costs. Revenues were only up $40 million.
The division has not posted a profit since 2005.
Lets be honest though. How can a company pretend to be happy with consistent losses in a division that loses billions every year? The answer is they are not. Microsoft will put on their happy face and talk about "improvements". The truth is the strategy behind their online division sucks.
What can Microsoft do differently online?
Bing? The decision engine seriously? and why the retarded commercials? How many millions or billions were wasted on those?
How are you interacting with your consumers? How are you making your online division seem different?
Internet Marketing Strategy?
Dear Qi Lu and Craig Mundie
Does the company even have one?
This is just a start but it would go along way toward making profitability happen.