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Microsoft reports record revenues

Microsoft's revenues hit a record $20 billion (£12.6 billion) during the quarter to December

A strong performance by gaming products, including better-than-expected sales of Kinect, helped push Microsoft's revenues to a record $20 billion (£12.6 billion) during the quarter to December.

The company said it was buoyed by the sales of the Xbox 360, games for the console, Xbox Live and the Kinect motion sensor, as revenues in its entertainment and devices division went up by 55% to nearly $4 billion (£2.5 billion).

Around 88 million units of Kinect were shipped in just two months of its launch.

Microsoft's operating income for the quarter reached $8.17 billion (£5.1 billion), while net income rose to $6.63 billion (£4.1 billion), or 77 cents per share - up from 74 cents a year ago.

However, sales of Windows operating system were weaker than expected, with analysts saying Apple's iPad and Macintosh systems may be chipping away at the market for Windows-based PCs.

But Kevin Turner, chief operating officer at Microsoft, said: "Windows 7 continues to be the fastest-growing operating system in history, and our recent system-on-a-chip announcement demonstrates our commitment that Windows will have the power and flexibility to run everywhere and on every device."

Revenues for the business division were 24% higher on the year.

Microsoft said sales of Office 2010 at launch were 50% higher than that for Office 2007 during the equivalent period.

Copyright Press Association 2011

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