Are you actually going to try and argue that MS can bring in a record 18.6 billion in total revenue and not be doing well? Their entertainment and devices division's revenue (1.78 billion) has increased 20% also despite the failures you mentioned. The revenue in their business and server's division has grown 13%.
So yes, despite some failures in hardware they are as healthy as ever.
EDD revenue increased $134 million, or 8%, primarily due to higher Windows Phone revenue, offset in part by lower Xbox 360 platform revenue.
·Windows Phone revenue, reflecting patent licensing revenue and sales of Windows Phone licenses, increased $222 million. ·We shipped 1.0 million Xbox 360 consoles compared to 1.1 million during the fourth quarter of fiscal year 2012.
Well, it only grew 8%, not 20% mainly because of Windows Phone, not Xbox...
Windows phone license revenue went up $222 million, but the whole Entertainment and Devices Division revenue only went up $134 million. --- PC + Nintendo Winning combination in the late 80s, winning combination in the 90s, winning combination today.