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Microsoft is facing significant financial challenges, with losses in various segments impacting its profitability. The Windows operating system generates $19 billion and the Office Suite $25 billion, but the Xbox video game console is losing $1.25 billion annually. Additionally, Bing.com has incurred losses totaling $7 billion since 2007, and the Surface tablet division took a $900 million charge due to unsold inventory. After acquiring Nokia for $7.2 billion, Microsoft also struggles in the cloud computing sector. What strategies could they adopt to turn these losses around?
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Microsoft’s Challenge • Microsoft makes money from • Windows Operating system, $19 billion • Office Suite, $25 billion • Microsoft also sells and loses money on • Xbox Video Game Console loses $1.25billion/year • Bing.com search engine, loses of $7billion since 2007 • Microsoft has lost money on its Surface Tablet; they took a charge of $900 million for unsold versions • Microsoft just buys Nokia for $7.2 billion • Microsoft losing money on cloud computing • What should they do?