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Microsoft announces Q2 earnings: $6.63b profit, Xbox revenue up 55%, Windows down 29%

Microsoft just announced it’s had itself a solid second quarter, posting an $6.63 billion profit on record revenues of $19.95 billion. That’s more or less about the same as last year, when it racked up a $6.66 billion profit on $19 billion in revenue — and while the numbers look stable and Redmond managed to slightly beat estimates, things are changing fast underneath the bottom line: strong Kinect and Xbox 360 sales drove Entertainment and Devices Division revenue up 55 percent to $3.6 billion, but Windows and Windows Live revenue fell nearly 30 percent to $5.05 billion. That means the revenue gap between Microsoft’s consumer device business and the Windows business is now just some $1.3 billion, compared to $4.8 billion this time last year — and it undoubtedly explains why Xbox got top billing at Ballmer’s CES keynote this year, after traditionally being ignored, and why Microsoft is moving Windows to ARM as the mobile and tablet spaces heat up. As for Windows Phone 7, there’s nary a peep, even though Microsoft was just crowing about moving 2 million licenses yesterday — we’re taking that to mean the infant OS hasn’t had any meaningful impact on revenue yet. We’re going to jump on the call at 5:30PM ET, we’ll let you know if anything good happens. Update: Corrected the profit numbers: it’s a $6.63b profit and a $8.17b operating income, not a $8.17b profit. Update 2: As noted by our friend Michael Gartenberg, Microsoft’s Q210 Windows division revenue was boosted by the inclusion of $1.71 billion in deferred Windows 7 upgrade sales and OEM pre-sales, so if you take those out, the gap between Windows and Xbox went from 3.1 billion in Q210 to 1.3 billion this quarter, and Windows sales are down 8 percent. It’s not a huge change for the big picture, but it’s worth noting the revenue deferral in context — Microsoft moved cash around so it would have a huge launch quarter for Windows 7, and now things are evening out. Microsoft announces Q2 earnings: $6.63b profit, Xbox revenue up 55%, Windows down 29% originally appeared on Engadget on Thu, 27 Jan 2011 16:15:00 EDT. Please see our terms for use of feeds . Permalink

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It’s hard to imagine The Office without Steve Carell , but the show is hiring a major talent (at least temporarily) to distract viewers from the departure of its iconic boss: Will Ferrell. Ferrell is to play another Dunder Mifflin/Sabre manager who gets involved with the office after Carell’s character leaves—…

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Healthy, Low-Calorie Breakfast Ideas and Recipes

WebMD shows ideas for a healthy breakfast you can make quickly in the morning.

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Forbes is out with its annual ranking of NBA teams, with this year’s headline-grabbing stat coming courtesy of LeBron James. His blockbuster trade to the Miami Heat raised the value of the team by 17% to $425 million, good for seventh in the league. The value of his old team,…

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Probe into Franco-era kidnappings

In Spain there has been a formal demand for an investigation into baby kidnappings that took place under the regime of General Franco. A group representing the families affected say hundreds of thousands of babies were stolen from clinics. It is believed the abductions took place well into the 1980′s, after the death of General Franco. Sonia Gallego reports

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NASA marks 25 years after Challenger disaste

WASHINGTON ‘ NASA on Thursday marked a day of remembrance for astronauts who have died in the line of duty, particularly the victims in the explosion of the space shuttle Challenger 25 years ago. Schoolchildren and space enthusiasts around the world watched live January 28, 1981 as the Challenger lifted off carrying seven astronauts including the first teacher, Christa McAuliffe, to…

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Greenland’s Glaciers Adapt Each Summer to Increased Melting, Slowing Down Ice Movement

image: Woodley Wonder Works / Creative Commons Some more hows and whys to the what of the fact that the Greenland Ice Sheet is melting , and should it disappear completely there’s 7 meters of sea level rise at the end of it all: New research published in Nature d… Read the full story on TreeHugger

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Gail Collins thinks there’s “a new streak of craziness abroad in the land” regarding guns, and she contrasts two proposed pieces of legislation as proof. The first, introduced by Democratic Sen. Frank Lautenberg, would put into place “modest” checks such as “making it more difficult to sell guns to people…

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Giant Lizard Gets Lost, Reunited With Owner

A 5-foot-long Monitor lizard named Elmer was reunited with his owner after being found wandering the streets of Riverside, Calif. The lizard escaped while his cage was being cleaned. (Jan. 27)

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You know, honestly, this is probably one of the least offensive thing I’ve heard on Rush Limbaugh in a while. Not that it isn’t racist and offensive, but for crying out loud, the wealth of examples of offensive Rushbo soundbytes out there are so vast. Nevertheless, when a constituent brought this segment to the attention of California State Senator Leland Yee, he agreed that Rush was going out of his way to be racist and called for a boycott of Limbaugh’s advertisers . Objecting to Stern’s mocking of the Chinese language last week, California State Senator Leland Yee is launching a boycott of Rush Limbaugh’s advertisers, and he’s enlisting help from civil rights groups to gain traction. Yee was outraged over Limbaugh’s January 19 program, where he mocked Chinese President Hu Jintao because his speech was not being translated. Yee was singled out by Limbaugh on his show as one of those people who were not happy with his comments. Yee tells the Contra Costa Times , “I think this is very damaging for children (to hear that) Rush Limbaugh thinks it’s OK to make fun of another language or make fun of those individuals who may speak another language.” See, but for those brain-dead dittoheads, that’s threatening Rush Limbaugh’s First Amendment right to be offensive on a international, syndicated platform (you know that the Founding Fathers specifically included the EIB radio network in the Constitution, they did!), and thems just fightin’ words. So Leland Yee, he was asking for death threats as far as they were concerned. Mayoral candidate and state Sen. Leland Yee said racist death threats were faxed to his San Francisco and Sacramento offices today. They appear linked to his recent criticism of right-wing commentator Rush Limbaugh. The anonymous faxes, laced with racial epithets and misspellings, were addressed to “JoBama Rectum Sniffing Moron LEELAND LEE” and call Yee a “fish head,” according to a copy provided by Yee’s office. The faxes include a drawing of a U.S. flag-adorned pickup truck towing a noose that is looped around what appears to be a caricature head of President Barack Obama. The document says: “Without exceptions, Marxists are enemies of the United States Constitution! Death to all Marxists! Foreign and Domestic!” It also says: “Achtung! Fish Head Leeland Lee. Rush Limbaugh will kick your (insert racist and profane words here) and expose you for the fool you are.” Wow. Racist AND violent death threats? Based on loyalty to a conservative talk show host? I’m sure this happens on the other side too…

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