As expected, Windows lagged significantly in the months preceding Microsoft's much-publicized debut of Windows 8. The Windows and Windows Live divisions fell to $3.24 billion, a decrease of 33% compared to where things stood one year ago. That's largely attributable to waning PC momentum: recent estimates from Gartner indicate that worldwide PC shipments fell 8 percent in the third quarter as consumers await the next version of Windows, due on October 26th. The company's reliable business division (which includes Office) grew by 1 percent to $5.50 billion in Q1.
Led by Xbox 360, which remains the top-selling console in the US, the Entertainment and Devices Division dropped a meager one percent and tallied $1.95 billion in revenue. Still, the imminent arrival of Microsoft's Surface tablet will likely make those figures — which have traditionally held steady — far less predictable in Q2. The Wall Street Journal predicts Redmond is prepping between 3 to 5 million of the Windows RT devices and the success (or failure) of that effort will undoubtedly be felt during its next financial update.
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- Source Microsoft
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