The Role of the Home Products and Services Division

Over the last 20 years, Microsoft has built a billion-dollar business selling consumer desktop applications and hardware. Although newer consumer initiatives, such as the Xbox game console and Media Center PC, often get more attention, products from Microsoft’s Home Products and Services (HPS) Division, such as Encarta, Money, Works, mice, and keyboards, are well-established in the retail channel, and OEMs and system builders often bundle them with new computers. After several years of focusing on a handful of market-proven products, HPS is trying to develop a long-term strategy to expand its scope.

Billion-Dollar Business

Led by Vice President Lisa Brummel, HPS is part of Microsoft’s Home and Entertainment business segment, which also includes gaming, the retail sales channel, and TV platform products. (For an organizational overview, see the illustration “HPS Organization, Fall 2004“.)

The division contains approximately 1,150 employees, who oversee the production and marketing of consumer software and hardware and Mac software.