Microsoft profits soar by 31 percent

Despite a fall in the sales of its Windows software, software giant Microsoft has reported a profit jump of 31 percent.

Vole made losses in its online service division. Search engine Bing is a part of this particular division.

Microsoft’s revenues were up 13 percent at $16.43 billion which is thanks to a boom in sales of its Office software, Xbox consoles and Kinect controllers.

What is surprising is the fall in numbers of the Windows Operating System. While Microsoft can claim that Windows 7 OS may be the fastest selling operating system in history, revenues for the operating system dropped four percent in the quarter.

Chief financial officer Peter Klein said that strong financial results had been managed despite a mixed PC environment.

People were buying Office 2010, Xbox and Kinect at tremendous rates, and businesses of all sizes were buying Microsoft platforms and applications, he claimed.

Office 2010 has become the fastest selling version of Office and the entertainment and devices division grew by an impressive 60 percent.

Vole’s online service division reported a 14.5 percent increase in revenue to $648 million. Bing increased its share of the search market but Microsoft spent so much on promotion the division saw operating losses of over $700 million.

Klein should be reasonably pleased with the results, but will probably be miffed that the online services division is not making money. After all, Volish rival Google makes most of its money from this sector.