Microsoft? Megatough!: Fool by Numbers

On Oct. 25, software titan Microsoft (NASDAQ:MSFT) released first-quarter 2008 earnings for the period ended Sept. 30, 2007.

• The Windows Vista operating system is picking up steam, as corporate customers have started to qualify the platform for production use. It's not an unmitigated success, though -- driver issues still haunt the system, so some businesses and consumers still prefer their new computers to come with Windows XP instead.
• The entertainment and devices segment reported a $165 million operating profit, thanks to the Halo 3 release and a price cut on the Xbox 360 console. Just remember that the company took a $1 billion charge for fixing broken Xboxes in the last quarter and extending the product's warranty.
• Microsoft is firing on nearly every cylinder right now, with the notable exception of the online services division, formerly known as MSN. The aQuantive acquisition, which closed in the middle of the quarter, brings a boost to the segment's revenues, but couldn't save the online operating loss from more than doubling compared to last year.

(Figures in millions, except per-share data)

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Competitive Context

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