April 28, 2011

One of My Favorite Charts

Microsoft Online Losses

This chart is updated each quarter by Business Insider. It never fails to amuse. It depicts Microsoft's quarterly operating income from online services. The long-term trend, broken only by a few quarters when losses were worse than usual, is linear and negative. It has not gotten any better in six years. You are seeing a large corporation, employing many smart people, unceasingly bang its massive head against a wall.



I guess when you have enough cash on hand and don't give a crap about your shareholders, you can do damn near anything.

update: it's also worth noting that, while Microsoft utterly blows at making money online, the company continues to haul in boatloads of income. Windows 7 and Office make them a lot of money.

Microsoft earnings for the first three months of 2011 were $5.2 billion on $16.4 billion of revenue, up 31% Y/Y. I still wonder why they allow increasingly more blood spill from their online services unit. If they can't do well themselves, why not buy someone who can?