Microsoft Sees Potential in New Markets
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| Microsoft has struggled to make money in countries such as China and
| Russia where piracy of its flagship Windows operating system and Office
| business software remains rampant.
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| Microsoft Vice President Mitch Koch conceded that hardware sales are only
| a small part of Microsoft's overall revenues, which are dominated by
| Windows and Office sales, and that hardware doesn't have the high profit
| margins of established software.
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| But Koch, who is in charge of Microsoft's worldwide entertainment and
| devices retail sales, said the company's keyboards, mice and other
| computer peripherals are profitable, although it continues to lose money
| on its Xbox 360 videogame consoles.
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| In July, Microsoft warned that its latest foray into hardware, the Zune
| media player that will be built by Toshiba Corp. to compete against Apple
| Computer Inc.'s iPod, will not be immediately profitable.
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http://biz.yahoo.com/ap/060913/microsoft_hardware.html?.v=6
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