Results for Microsoft's September quarter are in: $15.06 billion in revenues, versus analysts' expectation of $14.8 billion. A unit which includes Microsoft's Xbox game console pulled in $1.8 billion, $350 million more than analysts hoped for. And the company's online division surprised with revenues of $770 million. But what's really surprising? How small that number still is, despite Microsoft's years of investment. [CNBC]
It's equally pathetic when you consider that the Aquantive parts of this division account for more than $180 million of that revenue. Additionally, prior to the Aquantive acquisition, the online division was a money loser every quarter it has existed. One big problem is that Microsoft has no experience at being penny pinchers, which is what Aquantive has had to be in its entire existence. So, until Microsoft's online division at large learns to do more with less, they are doomed to poor revenue growth, and in all likelihood barely eeking out a profit, it not returning to money losing.
$770M is 45% of Yahoo's total quarter revenue, but MS has nowhere near 45% the online presence of Yahoo.
I'm glad they lowered Xbox 360 to $199...wouldn't touch it otherwise, and I'm sure I'm not the only one.
