Microsoft’s Loses $728 Million Online in Q4
We concentrate on the online space most of the time here at Marketing Pilgrim. With that in mind, we just had to point out that despite all the relative calm about Microsoft’s Q4 reporting (meeting expectations, profitable etc), we can’t keep our eyes off the staggering $728 million loss on $668 million in revenue for the online piece of the tech giant.
If you are keeping track that means that the online loss for the fiscal year totals $2.56 billion (yup, with a b) on revenues of $2.53 billion. Here’s a picture of Microsoft’s online track record thus far from SAI.
Is there any hope for turning this continuing trend around? What do they have to show for it thus far? A few percentage points gained here and there in search share against a competitor, Google, who may have finally broken their social networking glass ceiling with Google+?
Of course, it’s not like the online operations will sink the tech giant but if online is the future of the business world and it appears that your online operation is a bleeder, what does that say about the future?
We desperately need competition for Google in search but how long can Microsoft continue to keep online operations afloat? Oh, and let’s not forget that some of their cash cows’ fields are being grazed by Google online bovine like Docs, Chrome and more.
What’s your take on Microsoft’s future be it online or off?