Windows 10’s upgrade model temporarily wipes $1.6B from Microsoft’s books

Microsoft’s decision to radically change the distribution and maintenance of Windows 10 put a $1.6 billion temporary dent in its revenue, the company said Thursday.

In a filing covering the March quarter, Microsoft pointed to the revenue deferral of Windows 10 — a relatively new way of accounting for the Redmond, Wash. company — as a reason for the 6% year-over-year decline in revenue.

“Revenue decreased $1.2 billion or 6%, primarily due to the impact of a net revenue deferral related to Windows 10 of $1.6 billion and an unfavorable foreign currency impact of approximately $838 million or 4%,” Microsoft’s 10-Q filing with the U.S. Securities & Exchange Commission (SEC) stated.

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Original URL: http://www.computerworld.com/article/3060177/microsoft-windows/windows-10s-upgrade-model-temporarily-wipes-16b-from-microsofts-books.html#tk.rss_all

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