![Microsoft Unveils Windows 8 Microsoft Unveils Windows 8](https://api.time.com/wp-content/uploads/2015/01/154745890.jpg?quality=85&w=2400)
Microsoft’s second quarter earnings report released Monday had a few bright spots, including rising sales in mobile devices and cloud services. Overall, the company’s sales were up 8% in the quarter ending Dec. 31, though costs related to acquisitions and layoffs meant profits were down 10.6% to $5.9 billion.
Despite the company’s good sales numbers, revenue from copies of its Windows operating system installed on new computers, long a reliable source of cash, were down 13% year-over-year. Why?
First, the consumer PC market has been either slipping or stagnant for years, meaning there’s fewer devices capable of running Microsoft’s PC operating system being sold.
But there’s another reason that’s far more under Microsoft’s control.
Back at the end of 2013, Microsoft was on the verge of ending technical support for Windows XP business customers. That convinced lots of IT and accounting departments it was finally time to upgrade from the decade-plus-old operating system, driving sales of Microsoft’s newer OSes, like Windows 8.
However, that XP end-of-life phenomenon wasn’t around to drive sales last year, helping explain Windows’ poor year-over-year numbers. (Microsoft also said cheaper copies of Windows it sold to academic buyers cut into the category’s revenue).
The 15 Most Bizarre Moments From the Consumer Electronics Show
![APTOPIX Gadget Show Samsung A brand ambassador tests Samsung's Gear VR headset at the Samsung Galaxy booth at the International CES on Jan. 6, 2015, in Las Vegas.](https://api.time.com/wp-content/uploads/2015/01/25-ces-strange-moments-2015.jpg?quality=75&w=2400)
![2015 Consumer Electronics Show (CES) in Las Vegas Frank Lee, Brand Marketing for LG Electronics MobileComm USA, demonstrates the enhanced selfie feature on the new LG G Flex 2 mobile phone on press day for the 2015 International Consumer Electronics Show (CES) at the Mandalay Bay Convention Center in Las Vegas on Jan. 5, 2015.](https://api.time.com/wp-content/uploads/2015/01/20-ces-strange-moments-2015.jpg?quality=75&w=2400)
![US-LIFESTYLE- IT-ELECTRONICS-CES Attendees lay on Serta mattresses at the Serta stand on Jan. 6, 2015 at the Consumer Electronics Show in Las Vegas.](https://api.time.com/wp-content/uploads/2015/01/26-ces-strange-moments-2015.jpg?quality=75&w=2400)
![Joe Clayton, CEO of Dish, arrives on stage banging a bass drum followed by company mascots during the Dish news conference at the International Consumer Electronics show (CES) in Las Vegas Joe Clayton, CEO of Dish, arrives on stage banging a bass drum followed by company mascots during the Dish news conference at the International Consumer Electronics show (CES) in Las Vegas on Jan. 5, 2015.](https://api.time.com/wp-content/uploads/2015/01/19-ces-strange-moments-2015.jpg?quality=75&w=2400)
![US-LAS VEGAS-CES-CARS A transparent TRW model car is seen during the 2015 International Consumer Electronics Show (CES) in Las Vegas on Jan. 6, 2015.](https://api.time.com/wp-content/uploads/2015/01/15-ces-strange-moments-2015.jpg?quality=75&w=2400)
![CES 2015 At the 'Unveiled-event' a young woman has a look at salad at the CES electronics and consumer technology tradeshow in Las Vegas on Jan. 4, 2015.](https://api.time.com/wp-content/uploads/2015/01/14-ces-strange-moments-2015.jpg?quality=75&w=2400)
![CES 2015 The drone'Nano' from 'Zano' on Jan. 8, 2015.](https://api.time.com/wp-content/uploads/2015/01/16-ces-strange-moments-2015.jpg?quality=75&w=2400)
![2015 Consumer Electronics Show (CES) in Las Vegas Attendees interact with wity screens that run on Intel's Realsense technology on Jan. 6, 2015.](https://api.time.com/wp-content/uploads/2015/01/22-ces-strange-moments-2015.jpg?quality=75&w=2400)
![2015 Consumer Electronics Show (CES) in Las Vegas An attendee wears Altspace Virtual Reality head ware on Jan. 6, 2014.](https://api.time.com/wp-content/uploads/2015/01/21-ces-strange-moments-2015.jpg?quality=75&w=2400)
![Newest Innovations In Consumer Technology On Display At 2015 International CES Sony Electronics President and COO Mike Fasulo displays the Sony 4K Action Cam at a press event on Jan. 5, 2015.](https://api.time.com/wp-content/uploads/2015/01/24-ces-strange-moments-2015.jpg?quality=75&w=2400)
![Newest Innovations In Consumer Technology On Display At 2015 International CES Consumer Electronics Association President and CEO Gary Shapiro exits a Mercedes-Benz F 015 autonomous driving automobile after it was unveiled at a Mercedes-Benz press event on Jan. 5, 2015.](https://api.time.com/wp-content/uploads/2015/01/ces-20151.jpg?quality=75&w=2400)
![A display shows Panasonic's virtual make-up mirror at a Panasonic news conference during the 2015 International Consumer Electronics Show (CES) in Las Vegas A display shows Panasonic's virtual make-up mirror at a Panasonic news conference on Jan. 5 , 2015.](https://api.time.com/wp-content/uploads/2015/01/18-ces-strange-moments-2015.jpg?quality=75&w=2400)
![2015 Consumer Electronics Show (CES) in Las Vegas Selfie sticks of the company 'Noosy' displayed on Jan. 8, 2015.](https://api.time.com/wp-content/uploads/2015/01/23-ces-strange-moments-2015.jpg?quality=75&w=2400)
![US-LIFESTYLE-IT-ELECTRONICS-CES World freediving champion Stig Severinsen holds his breathe underwater for a total of 5 minutes, 35 secs to demonstrate the functionality and accuracy of the Masimo SET pulse oximetry device on Jan. 8, 2015.](https://api.time.com/wp-content/uploads/2015/01/27-ces-strange-moments-2015.jpg?quality=75&w=2400)
![Workers install an advertisement for a new S'UHD TV from Samsung Electronics on the side of the Las Vegas Convention Center in Las Vegas Workers install an advertisement for a new S'UHD TV from Samsung Electronics on the side of the Las Vegas Convention Center on Jan. 4, 2015.](https://api.time.com/wp-content/uploads/2015/01/17-ces-strange-moments-2015.jpg?quality=75&w=2400)
It’s safe to expect Windows to be less of a moneymaker for Microsoft in the future. Last week, the company announced that its upcoming iteration of the operating system, Windows 10, will be a free upgrade for users with older versions already installed. That’s a consumer-friendly move that should help drive adoption rates, but it will eat even further into Windows’ revenue figures. Still, if Microsoft continues to be successful in mobile and cloud services, that could more than make up for the free upgrade.
(Read next: Microsoft’s profits dip despite strong phone sales)
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