Microsoft Reborn: The Beast of Redmond Rises

July 23, 2012 by  
Filed under Features & Editorials

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Record Q4 revenue ahead of next gen products suggests Microsoft is back.

When you’ve just made your first loss in 26 years, a loss of almost half a billion dollars at that, it would seem trouble is afoot. In Microsoft’s case, however, nothing could be further from the truth. The Beast of Redmond has risen from its slumber and with a renewed appetite to consume all around it.

6104 Microsoft Reborn: The Beast of Redmond Rises
Lies, Damn Lies and Statistics
Look away from the headline dip into the red and Microsoft’s Q4 figures are remarkable. It had record revenue ($18.06bn),  a 12 per cent rise in operating income (to $6.93bn), a 30 per cent jump in net income (to $5.87bn), a 20 per cent increase in its entertainment and devices’ division and a 15 per cent year-on-year increase in Xbox Live subscriptions. So where did the loss come from? A whopping $6.2bn one-off write down from its failed 2007 record purchase of aQuantive in 2007 - an Internet advertising firm it believed would see it rival Google’s online ads. As such ignore the aQuantive anomaly and an entirely different picture of Microsoft’s business begins to form, one that is even more impressive considering when it has happened…

The Generational Lull

Right now Microsoft should be stagnating badly. Windows 7 sales are trailing off with Windows 8 confirmed for October, Windows Phone sales should be catatonic after Windows Phone 8 was confirmed to be incompatible with every existing WP7 handset and the aged Xbox 360 recently had its seventh birthday with the follow up ‘Xbox 720‘ expected to arrive next year. The company also hasn’t got a competitive tablet on the market, in an app-obsessed world Windows Marketplace lags well behind rivals and even one of its greatest weapons, Microsoft Office, is two years old and looks set to cede to Apple and Google with iOS and Android versions coming in November.

And yet Microsoft is turning in record revenue figures. Furthermore it is achieving them during the most radical shake-up in the company’s 37 year history and before any of the key products coming from it have hit the market. Much like the shake-up, all these products are bold, all contain huge risks and all are potentially game changers. This is a sample, read the rest of the feature on TrustedReviews.

Copyright for all reviews, editorials and features on this site belong to their respective publishers. All samples published on this website are via prior agreement with those publishers and serve to act as a portfolio and centralised location for all my work. Contact me at gordon@gordonkelly.com should you wish to commission me or supply review samples, press releases or arrange meetings. 

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