Wall Street braced for Microsoft disappointment

Wall Street is bracing itself for lower-than-expected revenue and profit and likely job cuts when Microsoft announces its latest financial results tonight.

PC sales showed their first quarterly sales decline in six years at the end of 2008, according to analyst IDC, and slowing demand from consumers is predicted to have a knock-on effect on the world's largest software company.

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thereapersson3619d ago

Well I'm pretty sure at least their XBOX division was profitable. After all, why would they stay adamant about price drops in the midst of company losses and economic turmoil? I know they want market share, but at the same time I am sure they would want to continue to gain positive revenue from any division of the company, especially their gaming division.

dazzalfc3619d ago

....but i tend to think that while Microsoft would like to see more marketshare when it comes to the Xbox 360, they also see potential for huge profits given that Live and peripherals would probably make up alot of where Microsoft make their money, so they'd near enough make any money lost through price cuts back again through these extras.

Just shows you though, not one company globally can say that they are in an extremely good position.

Raoh3619d ago

true but their major money comes from charging for services and software. windows, LIVE, Office.

dominance is the key because without competition they can charge you for stuff.

windows is the only OS that you pay for. (Mac OS X can be purchased but it has no license key so you dont have to buy it, just borrow it or copy it).

if PSN picks up and 360 and ps3 are closer in install base a drop or termination of LIVE could be possible, hurting their cash cow.

to stay cheap they cant produce hard drives at a more rapid pace as it would be expensive. better to wait till its cheaper to make bringing it later than its needed.

openoffice is becoming more popular, especially to netbook, eee machine and small business users.

Captain Tuttle3619d ago

There were down 5% on the day I think.

solidworm3619d ago

microsoft isnt making nothing on console sales at that price point and with the rampant piracy problems theyve got theyre losing on the games front as well