Microsoft’s Net Income Falls 22% As Windows 8 Launch Nears

Usually, if a company sees its yearly net income drop 22%, things get pretty tense around the office, but Microsoft is shrugging off its relatively dismal quarterly financial report. Despite the loss of net income, essentially flat sales numbers, and a sluggish overall PC market, the company indeed has reason for optimism--it’s about to unleash a slew of new and exciting products, including the long-awaited Windows 8 and its Surface tablets.

"The launch of Windows 8 is the beginning of a new era at Microsoft," said CEO Steve Ballmer in a statement cited by CRN. "Investments we've made over a number of years are now coming together to create a future of exceptional devices and services, with tremendous opportunity for our customers, developers, and partners."


Indeed, Windows 8 will likely spark PC sales among many who have been holding off on buying a Windows 7 system, and Microsoft also has a Windows Store opening soon and is beginning to bang the drum for its new online services such as Outlook.com and other Live features.

Call it the calm before the storm if you will; Microsoft knows that there’s a windfall coming, or at least is betting on it. Of course, if Windows 8 flops (we imagine Ballmer still has nightmares about Vista) and the Surface tablets fail to entice buyers, the company could have some greater financial troubles on its hands.