Microsoft Q2 Earnings: Xbox 360 Leads The Way As Windows Falls

As many of you will be aware, Microsoft has published its Q2 earnings and the only real surprise is how high the Xbox 360 has come in Q2. The Xbox 360’s sales went up by 55% to $3.6 billion, we already talked to you about how well its sales were doing, but I don’t think anybody expected a jump like that.

In total the profit that Microsoft have displayed is $6.63 billion, unfortunately for Microsoft if their profits were roughly the same this year as they were last, and the Xbox has climbed so much. This means that Microsoft has lost ground somewhere in other revenues.

Between Windows and Windows Live, they dropped by almost 30% to $5.05 billion and Windows business is down to $1.3 billion. Last year’s Windows business was up at $4.8 billion. Perhaps the Xbox 360 sales were aided by the Kinect. What do you think?

Microsoft are going to have to work hard for the rest of the year and try to somehow establish a foothold in the tablet PC market as this year is expected to be a biggest year since tablet PCs started out. You can read the full report of their earnings and losses over in Microsoft’s press room.

Over at Engadget.com, Nilay Patel has written an article where he mentions about Microsoft perhaps leaning towards ARM as the tablet world is ticking nicely.

What do you think of Microsoft’s earnings? Are you surprised that the Xbox 360 has to compensate for other areas to keep the figures up? Let us know your thoughts in the comments below.