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"Microsoft has reported a 22% fall in quarterly profits, ahead of the much-anticipated launch of its new Windows 8 operating system.  Net profit for the three months to the end of September 30 fell to $4.47 billion (\u00A32.79bn), from $5.74bn a year earlier, and missed analyst expectations.  Revenue dropped 8% to $16bn, but Microsoft has deferred $1.36bn in earnings to the following quarter due to the upcoming Windows 8 software release, pre-sales of Windows 8 machines and the launch of the new version of Office.  This included $783 million in licence fees for PCs pre-loaded with Windows 8, because Microsoft is unable to book the revenue until the units go on sale on October 26.  Shares in Microsoft were down 3% in extended trading, but then rallied slightly.   PC sales were down in the last quarter due to the tough economy, but also because consumers held off making a new purchase due to the coming Windows 8. The new touch-enabled software is a massive change for Microsoft&amp;#039;s operating system, and will run on PCs, laptops and tablet devices, such as Microsoft&amp;#039;s own Surface products.  Microsoft has also deferred $384m for PCs that shipped with Windows 7 but can be upgraded to Windows 8 for $15, and $189m for PCs that shipped with the new version of Office, or can upgrade. &amp;quot;The launch of Windows 8 is the beginning of a new era at Microsoft,&amp;quot; said Steve Ballmer, the chief executive at Microsoft.  &amp;quot;Investments we&amp;#039;ve made over a number of years are now coming together to create a future of exceptional devices and services, with tremendous opportunity for our customers, developers and partners.&amp;quot; In the three months to September 30, the Windows and Windows Live Division posted revenue of $3.24bn, down 33% on the same period in 2011. But Microsoft is banking on Windows 8 being a success. &amp;gt; Microsoft&amp;#039;s Surface tablets priced from \u00A3399 &amp;gt; Microsoft&amp;#039;s Windows 8 adverts revealed online - watch &amp;quot;We&amp;#039;re incredibly excited to be approaching general availability of Windows 8 and Windows RT,&amp;quot; said Kevin Turner, Microsoft chief operating officer.  &amp;quot;We&amp;#039;ve already certified more than 1,000 systems for Windows 8 from our hardware partners, ranging from the smallest tablets and convertibles to touch-enabled Ultrabooks and all-in-ones to the most powerful desktop computers.&amp;quot; Microsoft&amp;#039;s Online Services division reported revenue of $697m in the quarter, up 9% on the year earlier.  The Entertainment and Devices Division, which includes the Xbox console, posted revenue of $1.95bn, down 1% on the same period in 2011. Alongside Windows 8, Windows Phone 8 will launch this autumn, and the new mobile operating system will run on a range of next-generation phones from the likes of Nokia and HTC. "^^<http://www.w3.org/2001/XMLSchema#string>
<http://www.digitalspy.com/tech/operating-systems/news/a431862/microsoft-reports-22-profits-fall-ahead-of-windows-8/>