Microsoft posts loss but robust future anticipated

Microsoft is making headlines today by posting its first quarterly loss since going public in 1986. The losses are a result of a $6.2 billion write-down takes as the company acknowledges shortcomings in online services.

LOS ANGELES, CA (Catholic Online) - The Washington-based company reported its losses on Thursday, although the write-down was expected. Despite struggling in the online market, Microsoft continues to fund its hopeful Google rival, Bing and reevaluates its current market position.

The greatest part of its write-down was based on the acquisition of aQuantive in 2007. Microsoft wrote down $6.2 billion of the $6.3 billion price it paid for the company.

Microsoft has also struggled with its efforts to go mobile, arriving late to the mobile market well behind Apple and Android. Now the tech giant is facing a strenuous battle to gain any significant market share. 

Microsoft, while facing problems in the mobile and online marketing/advertising sector is still performing strongly in other areas. The company's Xbox gaming and media platform is doing well and it has high expectations for Skype. 

Microsoft also has new offerings on the way including a Windows 8, a new version of Office, and a tablet, which it hopes will bolster revenues this fall.

Although Microsoft posted a loss, the company is still strong and in the wake of its reports its stock rose 2.5 percent in after-hours trading. It is clear that the company and investors are both confident that this fall will bring a change in fortunes for the tech giant and that Microsoft still has tremendous earning potential. 

Indeed, the company is well positioned. Windows remains the dominant operating system for personal computers around the world controlling more than half of the OS market. However, as the world increasingly eschews desktops for more mobile tablets, Microsoft's share will further erode. Microsoft will now depend on Window's 8 and its tablet to remain strong in the OS market. 

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