Microsoft reports first-ever sales drop

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The Seattle Times is reporting that Microsoft is admitting to the first ever decline in year-over-year profits since the company’s inception more than thirty years ago.

That’s not to say that they lost money, because they certainly didn’t.  The Redmond giant reported net gains of $14.57 billion dollars for fiscal year 2008; comparing that to net profits a year ago (which clocked in around $17.7 billion dollars) and the 17-pecent decline becomes markedly evident.  Microsoft is blaming the lackluster year on decreased PC and server sales, no doubt largely due to the economic recession.  Critics of the company are using this as an excuse to talk about how Microsoft is just “circling the drain”, so buy a Mac.

This time next year, however, things are likely going to tell a much different story.  Economic analysts are reporting the recession of the past year seems to be in its death throes, with a number of companies reporting increased profits and hiring practices.  Microsoft also hopes to be sitting pretty, with upgrades to all of its products lines coming out in the next year: Windows 7, Office 2010, Project Natal for the Xbox360, Windows Mobile 6.5 and probably 7.  



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