Revenue and Profit (Loss) by Business Segment

Microsoft reports financial results in five business segments.

Windows & Windows Live includes client OSs and Windows Live software and services.

Business includes Office, Exchange, SharePoint, Dynamics, and other software and online services for businesses.

Server & Tools includes server platform software, such as Windows Server and SQL Server, System Center management software, developer tools, Windows Embedded OSs, and support and consulting services.

Entertainment & Devices includes Xbox, consumer hardware and software, and mobile and embedded hardware and software.

Online includes Bing, MSN, and products for advertisers and publishers.

The row “Other” counts revenue and expenses that cannot be attributed to any single business segment, including legal expenditures and broad-based marketing and administrative expenses.

This chart shows revenue and operating income or loss for each business segment for the first quarter of Microsoft’s 2011 fiscal year (Q1’11) and the same quarter a year ago. Last year’s figures have changed from previous reports because Microsoft has changed the composition of its reporting segments. In particular, Windows Live has moved from Online to the new Windows & Windows Live (formerly Client) segment, services for mobile devices have moved from Online to Entertainment & Devices, and some field selling costs have moved from general corporate expenses into the appropriate business segment.