Microsoft's revenues are now around $1 billion a week.

Microsoft's revenues are now around $1 billion a week, with the company totting up sales of $51.12 billion (up 15%) in its latest financial results, for Fiscal Year 2007. Annual profits were more than $14 billion, and the company returned $31 billion to shareholders through share buybacks and dividends.

Revenue for the fourth quarter was $13.4 billion (up 13%), with profits of $3.04 billion (up 7%) after taking a $1 billion charge for Xbox 360 warranties. Without that, profits would have been up 26%.

Over the year, the money rolled in from client software ($15 billion), Server and Tools ($11.2 billion), the Microsoft Business Divison, which includes Office ($16.4 billion), the Entertainment and Devices Division ($6.1 billion) and the Online Services Business ($2.5 billion). The last two lost money. Online Services lost $732 million as Microsoft invested in data centres and rolled out Windows Live. Entertainment and Devices lost $1.9 billion after its write-off. Microsoft says:

EDD operating loss increased primarily due to the $1.06 billion Xbox 360 charge and Zune launch-related expenses. The increase in operating loss was partially offset by increased Xbox 360 platform sales and decreased Xbox 360 console manufacturing costs. Headcount-related costs increased 15%, driven by a 9% increase in headcount and an increase in salaries and benefits for existing headcount, partially offset by a decrease in stock-based compensation expense.

The Business Divison increased its annual operating profit by 13% to $10.8 billion, and the Server and Tools business by 29% to $3.9 billion, in spite of their major competitors being free.

http://blogs.guardian.co.uk/technology/archives/2007/07/21/microsoft_sales_surpass_50_billion_despite_competition_from_free.html

dosen't really matter what the gaming division does, cuz ms is bringing in more than what they lose

that point is MOOT

Any assumption that because Microsoft is making 1 billion a week, it wont care much abouta couple of billion dollars lost in the xbox 360 is foolish. This is about the prospect of making $$$ and I think "Gaming for PC" has a lot more to offer to MS than Xbox 360 (Windows Vista, PC, do they ring a bell?)

At the end of the day gamers like you and I will end up paying for what they have lost plus what they will be making.

Both Sony and MS post nice 2 Billion dollar losses. It's a wonder why the gaming industry doesn't implode with all the red ink.