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Microsoft reported a 2.7 percent increase in overall revenue thanks to a small boost from Windows 8

Windows 8 didn't hit the ground running the way Microsoft thought it would after the October 2012 release, but it did offer a small boost in the company's latest financial earnings report.

For the quarter ended December 31, 2012, Microsoft reported a 2.7 percent boost in revenue to $21.5 billion from $20.9 billion in the year-ago quarter. However, the Windows maker saw a 3.7 percent drop in profit to $6.38 billion (76 cents a share) from $6.62 billion (78 cents a share) one year ago.

Microsoft saw a revenue increase of 24 percent in its Windows division to $5.88 billion (or 11 percent when adjusted for early sales of Windows 8) for the second quarter, which was the first to include Windows 8.

Microsoft didn't offer sales figures for its first homemade tablet, Surface with Windows RT. The new version -- Surface with Windows 8 Pro -- is expected to hit store shelves on February 9.

“Our big, bold ambition to reimagine Windows as well as launch Surface and Windows Phone 8 has sparked growing enthusiasm with our customers and unprecedented opportunity and creativity with our partners and developers,” said Steve Ballmer, CEO at Microsoft. “With new Windows devices, including Surface Pro, and the new Office on the horizon, we’ll continue to drive excitement for the Windows ecosystem and deliver our software through devices and services people love and businesses need.”

Windows 8, which was released in late October 2012, was met with plenty of criticism for its massive redesign. However, many PC makers (such as Dell) were hoping that it'd be the saving grace for the PC market, where hardware sales had been declining over the years as mobile devices (smartphones and tablets) exploded onto the scene.

But many PC makers didn't see a huge increase in sales with Windows 8. And while Microsoft hasn't released sales figures for its Surface tablet yet, reports last month indicated that the new device took a sales hit due to a lack of distribution. Microsoft had only offered the Surface with Windows RT online and at Microsoft stores (and there are a little over 60 stores total in the U.S.).

In mid-December, Microsoft finally allowed third-party retailers to sell the Surface. Surface with Windows RT also made its way to Australia in mid-December, and will do so in other countries in the following months.

Earlier this month, Microsoft announced that 60 million Windows 8 licenses were sold. However, 60 million licenses sold doesn't mean that there are 60 million Windows 8 devices out there.

In today's financial earnings report for Q2, Microsoft also announced declines in its Entertainment and Devices division (including Xbox) of 11 percent to $3.77 billion and its Business division (including Microsoft Office) of 10 percent to $5.69 billion from a year earlier.

Microsoft's shares were down 2.1 percent in after-hours trading today to $27.63.

Source: Microsoft

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RE: Windows 8 sucks
By stm1185 on 1/24/2013 11:05:54 PM , Rating: 0
Windows 8 + Stardocks Start8 is a better operating system then Win7, faster, safer, more efficient, better explorer UI...

It has one flaw, and that is removed for $5 if you are smart enough to be able to double click .exe file.

Take a look at what Win8 offers beyond the mad idiot ravings of OMG STARTSCREEN BLAH; and you will quickly see that MS is giving you a deal at $40, $45 when you add in a start button replacement.

It's a better upgrade over Win7 then 7 was over Vista 64 when it was released.

RE: Windows 8 sucks
By Nyu on 1/24/2013 11:12:23 PM , Rating: 1
Missing the start button is the least of the issues. Removing glass for that ugly squared flat color design was the worst move m$ ever pulled on the history of Windows. I could live with replacing the start button, in fact I did try it for a bit on my laptop, used some app to have a similar menu, boot directly into the desktop, still didn't convince me.

It won't even remember keyboard settings properly, install w8 in English, set your keyboard to JP, you will have to reinstall the keyboard driver after every reboot cause the layout will be wrong.

Faster? I don't think so, mostly the same as w7. Explorer and task manager sure were nice, but not enough to justify the big mess that is the whole rest of the OS. All the revamped settings areas are horrible, undocumented api changes breaking applications, lots of people unable to even change their account picture.. how freaking ridiculous is that.

If I wanted a broken half-assed-retarded OS I'd be running Linux.

RE: Windows 8 sucks
By stm1185 on 1/24/2013 11:45:44 PM , Rating: 1
Aero Glass vs 8 Explorer is a matter of taste. I greatly prefer the 8 look, I like sharp clean lines and crisp text. I like the square edge. Modern XP! I can understand liking the transparent border more I guess.

The rest seems to be the same whine you get from after any software update. Little bugs that get fixed before too long, but someone has to rant about it as if it's some huge deal. Not the Account picture oh no! IF I CANT HAVE A KITTEN EATING A CHEESEBURGER THERE IS NO POINT!

RE: Windows 8 sucks
By inighthawki on 1/25/2013 1:48:51 AM , Rating: 5
I think I can speak for at least a decent number of people when I say that part of the problem is not the removal of glass, but the execution and result of doing it.

The goal was to improve battery life and performance on tablets, thus in doing so, the powerful desktops owned by many enthusiasts were just ignored. Those powerful gaming grade PCs that are plugged into the wall do not benefit from such a change. Most of them could probably easily render several dozen, maybe hundreds of fullscreen quads of solid glass without as much as a hiccup.

The execution was also done poorly. Aero glass couldve easily existed alongside the new theme, or even simply disabled. A couple "if statements" scattered throughout the code could have easily achieved the same performance gain on tablets while retaining the ability to keep glass rendering in. Instead they actually took the much harder route and completely stripped glass from the codebase. A move that I'm sure took a while and caused many bugs along the way.

On top of that, the way they removed glass also disabled all transparency in the system except for the taskbar which has some special code to allow it to be transparent. This means that it's now impossible for custom themes to make use of any form of transparency without hacks - either system file modification or the well known bug that makes DWM skip the rendering of the solid area of the window borders, but leaves the borders 100% purely transparent, almost impossible to use, and causes buggy rendering upon moving the window.

In addition, this was all done after the release preview build. This would mean it would never make it into a public beta, meaning they wouldn't receive any feedback, providing no pressure on Microsoft to back off the change. It's interesting to go to the Building Windows 8 blog where they introduced this feature. Look through the posts that mention the removal of glass - the responses are overwhelmingly negative. One can attribute this slightly to the same "vocal minority" as all the posts regarding the start menu. The primary difference here is that this is a theme change, and thus is highly subjective, and poses no threat to keep around. It doesn't interfere with a core goals of the OS (functionality), whereas backing down on the new start screen would require a whole new approach to the OS. It can be supported alongside the new theme with no sacrifices.

That said, I'm disappointed at the loss of glass. It was actually my favorite feature of windows over the past 6 years, and I will miss it greatly. I simply hope they do not cripple the system any further. I can live without glass and transparency, but there is a point where it can be detrimental to my productivity, when things start feeling "unpolished" as opposed to simply being "cleaned up" and fast/smooth.

Apologies for the wall of text.

RE: Windows 8 sucks
By Pirks on 1/25/13, Rating: -1
RE: Windows 8 sucks
By cyberguyz on 1/25/2013 6:59:07 AM , Rating: 2
Pirks, you have a very narrow view of the world if you think that only enthusiasts use powerful desktop and notebook systems. Walk into any bank or insurance company. What kinds of hardware systems are the folks in working in these using? Tablets?

You think software developers use tablets to write their code? You think the developers who wrote and maintain Windows 8 are using Tablets for their coding?

You think I am writing this on a Surface?

I can tell you this:

Tablet users are a minority out there not a majority. Many of the tablet users out there also use desktops and/or laptops.

Answer this: When someone is looking to buy a new computer, are they looking to spend their $500 on a 10.1" quad-core tablet with 2GB memory and 32GB storage, or are they going to spend it on a 16" quad core laptop with 8GB memory and 750GB storage? Hell, I know what I would spend my $500 on.

Most cell phone users use Android, not Windows or iOS.

You are calling desktops a niche market. I am calling tablets a niche market due to their horribly limited capabilities. And if you think they are not limited, try playing Skyrim on a "Surface".

RE: Windows 8 sucks
By Pirks on 1/25/2013 2:07:15 PM , Rating: 1
Tablet users are a minority
Yet they drive the majority of computer industry profits these days
When someone is looking to buy a new computer, are they looking to spend their $500 on a 10.1" quad-core tablet with 2GB memory and 32GB storage, or are they going to spend it on a 16" quad core laptop with 8GB memory and 750GB storage?
Get a large heavy device with no battery life to surf the net/facebook/email/netflix/plants vs zombies/etc? Or get a thin light tablet with a couple of days of battery life instead? That's a freakin' tough question, man. I need time thinking about it :)))
Most cell phone users use Android, not Windows or iOS
And most routers use Linux, so what?
I am calling tablets a niche market due to their horribly limited capabilities
Who cares about your opinion? All corporations care about is $$$, and tablets and smartphones mean big $$$ these days, so deal with it.
if you think they are not limited, try playing Skyrim on a "Surface"
I played a few shooters like Dead Trigger, Shadowgun and even medieval themed Inifinity Blade hack'n'slasher, after playing these I don't care about Skyrim or what not. You're seriously pushing an idea that Skyrim on an average/cheapo budget PC (that most people use at homes) looks any better than Infinity Blade on iPad 4? Dude, you gotta crawl outta your cave and say hello to reality! Really.

RE: Windows 8 sucks
By Luticus on 1/25/2013 4:04:38 PM , Rating: 2
You know, I agree with you to a certain point. Tablets are an important and raising force in the computer/technology industry. Personally I run windows 8 on everything from my tablet to my htpc to my twin xeon 32GB desktop.

However, your comparison of a crappy tablet game (and yes, they're all crappy) to Skyrim is a mortal sin! You'll have to pry my skyrim from my cold dead hands! That said, even though skyrim is 5000% better on the PC, it can be had on the PS3 and/or XBox to those who don't care about free community mods and such. Skyrim is but one of many though. Battlefield 3, Call of duty, Crysis, etc all cream any "tablet/phone" game out there. I understand that I'm the exception, not the rule and that most people with a desktop probably use it for mp3s, facebook, school work, and minesweeper and could likely make due with a tablet easy. I have a tablet too, and it rules. It's a supplement to my desktop though, not a replacement. When I need the power, I have it. Personally I need the power often as I do things with my PC's most people wouldn't touch.

RE: Windows 8 sucks
By Luticus on 1/25/2013 4:09:00 PM , Rating: 2
Oh, and I agree GIVE ME BACK MY AERO!!!!

Custom gestures wouldn't be bad either.

RE: Windows 8 sucks
By Pirks on 1/25/2013 4:42:34 PM , Rating: 2
Yeah, I know that you and other high end PC gamers with $1000+ 133t rigs look down on tablet gaming but you have to understand that you guys are a minor niche these days. Big money is in tablets and tablet gaming and it will grow quite a lot unlike the PC gaming which won't grow as fast or won't grow at all. Problem is you don't understand that Apple invests a huge amount of R&D into the fastest (and at the same time cheap and efficient) tablet SoCs possible, their newest A6X chip is quite good at 3D and way, way better than tablet SoCs from just two years ago. With such amount of progress don't be surprised seeing tablet gaming going up significantly in profits and quantity/quality of content while PC side staying the same.

It's just that Apple and MS are looking at the future and you are looking at the past. It's that simple :)

RE: Windows 8 sucks
By Luticus on 1/26/2013 5:03:37 AM , Rating: 2
It's not so much that I look down on tablet gaming, it's that most tablet games genuinely suck. Very few are worth my time of day. Ninety percent of them are word games, cut the rope, angry birds in some other scenario everyone wows over... these games are neat/fun for about five minutes and then quickly uninstalled. They are certainly NOT a replacement for my computer/console games. When I pick up my phone it's pretty much never to play games. Actually the only reason I have any games on it at all is so I have something to do while I'm sitting on the can at work. Yes tablet games will get better, this is obvious and I have absolutely no doubt that they will some day be what PC gaming is today. Thing is, your assertion that PCs are just going to stand still is dead wrong. Progress will be made. Hell, have a look at the newest cryengine stuff and tell me anything on your tablet comes close to it. Yes, SOC'S are great, but their focus is mainly on power efficiency and not on maximum performance. That's what makes them ideal for tablets and cellphones. PC's on the other hand could care less about power consumption for the most part, and therefor they can focus purely on performance. In fact it's only been in recent years that laptops became as "good" as desktops performance wise and that's still a stretch. You can by a laptop with an i7 and 16GB RAM sure, but it'll last you about 3 hours tops, cost a ton of money and is only about half to three quarters as powerful as a desktop at equal price (certainly can't touch my main system). There is no arm processor that can come close to touching anything even one of xeons can do, and there wont be for quite a few years because that's not their focus. By the time there is, my new xeons will be far superior. So really it's a question of how much processing power do we really need. As applications get smarter and AI becomes more standard and we demand complex tasks be faster and faster, well as always, the sky's the limit. There will always be (at least for the foreseeable future) a place for desktop and traditional laptops. They might not be as big a market as the tablets are but they aren't fading away into obscurity as some people would have you believe. Even Apple realizes it and that's why they still sell them.

RE: Windows 8 sucks
By nikon133 on 1/28/2013 6:33:47 PM , Rating: 1
In addition - most enthusiasts I know, hardcore PC gamers, really don't care about makup. For them, it is all about improving performance in games and apps, and overall system performance - boot/shutdown/restart times etc. Which, I think, W8 delivers nicely.

RE: Windows 8 sucks
By Paj on 1/25/2013 8:15:50 AM , Rating: 2
The removal of extraneous effects was a smart move by Microsoft. With the rise of responsive web design, gradients, transparency and other gloss are dying out and being replaced with a cleaner, geometric aesthetic. You only need to look at their rebranding to see evidence of that.

Not only does it make it easier for elements to resize and adapt to different devices, it speeds up the time it takes for the UI to draw, and saves battery life by requiring less computation to render.

RE: Windows 8 sucks
By DrChemist on 1/25/2013 1:36:14 PM , Rating: 1
Being as much of a gamer and enthusiast as I am I agree that the change has left some of use behind in not allowing for choices for us to utilize a more intense visual experience based theme. However, we aren't the average in the bell curve, we are the outliers, the 10%. MSFT as well as other companies are doing the same thing because we aren't the majority. However, it would be nice to be noticed for our spending for bleeding technology to keep technology moving faster.

RE: Windows 8 sucks
By nikon133 on 1/28/2013 6:25:06 PM , Rating: 2
I agree Aero did look nice. While I don't have issues with new look, I cannot say either that I am happy with Aero's demise.

But. At worst, that crippled looks of Windows 8, not functionality. Sort of like what you get when you wake up next to your lady in the morning, before make-up protocols are engaged ;)

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