“Windows Division revenue decreased $598 million or 13%, primarily reflecting the deferral of $540 million related to the Windows Upgrade Offer announced in the quarter. The offer provides consumers who buy qualifying Windows 7 PCs the option to purchase a downloadable upgrade to Windows 8 Pro for an estimated retail price of $14.99 during the promotion period. Qualifying purchases must be made between June 2, 2012 and January 31, 2013, and offers must be redeemed by February 28, 2013. The deferral impacted only the timing of revenue recognition and not cash flows from operations during the periods reported.”
M$ is finally recognizing that an OS is a commodity these days and $15 is a reasonable price to pay for a licence. The question remains how long they can continue to sell licences without a discount after 2013. The losses will mount if they have to discount everything.
OTOH, their revenues from other software products continues to rise but much of it depends on that other OS. It’s a house of cards.
see Press Release.