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Xbox dip takes shine off Microsoft performance

Simon Quicke

The core parts of Microsoft's operations delivered the numbers for the vendor which saw the performance of its entertainment division, powered by the Xbox, tumble in its third fiscal quarter.

The vendor revealed that its servers and tools business grew by 14% year-on-year in revenue to $4.57bn with SQL Server experiencing strong demand. Office 20120 helped the business division report a 9% climb in turnover to $5.81bn.

The Windows part of the operation saw a 4% revenue rise, with Peter Klein, chief financial officer at Microsoft, pointing out that there was still strong demand in the business desktop market.

But where the arrows started to point downwards was in the performance of the entertainment and devices division which saw a 16% decline in revenue to $1.62bn.

Overall the numbers for Q3 saw net income dip slightly year-on-year to $5.11bn from $5.23bn a year earlier. Revenue climbed by 6% to $17.41bn.

With some major products penciled in for launch this year Steve Ballmer, CEO of Microsoft, was upbeat about the current performance.

"With the upcoming release of new Windows 8 PCs and tablets, the next version of Office, and a wide array of products and services for the enterprise and consumers, we will be delivering exceptional value to all our customers in the year ahead," he said.

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