Microsoft, in Middle Age, Hurries to Go Beyond the PC "Microsoft has been trying to create business from the convergence of computing communications and entertainment technologies since at least 1995, with mixed success. All of its $13.2 billion operating profit for the financial year that ended in June came from the three divisions that focus on its traditional strengths: PC operating systems, PC applications, and server operating systems and programming tools.
The home entertainment division, which includes the Xbox console, video games, PC games, consumer hardware and software and the television platform, generated a loss of $940 million on sales of $2.78 billion for the year. The company's mobile and embedded device division had a loss of $175 million on sales of $153 million.
A Microsoft executive seemed to support that view. "It is a marathon, not a sprint, and we are pretty good at marathons," said Peter Moore, vice president for worldwide retail sales and marketing at Microsoft's home and entertainment division."