Microsoft entertainment revs dip amid decline in vidgame biz

Windows 8, Surface tablet help keep results solid

Despite a bump from the launch of Windows 8, Microsoft reported a 4% drop in profits at the end of Dec., including a 2% decline in adjusted revenue from its entertainment division.

During a conference call to discuss the fiscal second quarter ending Dec. 31, the company reported net income of $6.38 billion in the second quarter, compared to $6.62 billion for the same period last year.

Company beat analysts’ expectations when it came to shareprice, however, hitting 76 cents a share with $21.46 billion in revenue. Wall Street’s average guess for the company was 75 cents per share.

Xbox 360’s dominance in the console department wasn’t enough to boost the company’s entertainment earnings, although the vidgame industry experienced overall declines last year.

Calling its financial results “solid,” Microsoft chief financial officer Peter Klein said the company had a healthy “product momentum” in the market, referring to the debut of Windows 8 and its new Surface tablet in October. General manager of investor relations Chris Suh credited the Surface products with bumping up revenue in the Windows business, although did not disclose specific sales numbers.

Exec also said the company planned to expand the number of devices and price points offered.

“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, chief executive officer 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.”