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Surface RT: poor tablet performance has cost Microsoft $900 million

Friday, 19th July 2013 11:22 GMT By Dave Cook

Microsoft has admitted that he poor performance of its Surface RT line of tablets has cost the company $900 million.

The figure came as part of Microsoft’s investor call last night, during which the company confirmed that the division that includes Xbox rose 8% last year.

CVG reports that lacklustre sales of Surface RT and the loss announcement caused Microsoft’s shares to dip 7%. The site added that some four million Surface RT tablets are believed to be manufactured by the company, with only a quarter sold since launch.

During the investor call, Microsoft’s chief financial officer Amy Hood said: “We know we must do better. We are confident we are moving in the right direction”.

The news follows a confirmed Surface RT price cut. Get the new prices here.

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12 Comments

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  1. SlayerGT

    Well, I guess that might explain the quick turn around on XBOne. They need it to be profitable.

    #1 9 months ago
  2. Francis O

    Yeah, and people say Iwata should be fired…..lol he never costed the company 900 million, even with the 3DS debacle in 2011.

    #2 9 months ago
  3. TheVoiceOfReason

    @2 They made a $4.97 billion profit, in a single quarter. I think they can afford to take the hit.

    #3 9 months ago
  4. Francis O

    @3

    Never said they couldn’t take the hit. They make all their money from Windows, and computer sales.

    But releasing a $1000 tablet against the Ipad…..whoever made that decision should be fired.

    #4 9 months ago
  5. machy

    I’m calling it, next in line X1

    #5 9 months ago
  6. Moonwalker1982

    Well that’s a shame. I have a Surface Pro and I love it. I did manage to get it for 370 euros less than store price. But it was brand new and with touch cover keyboard.

    #6 9 months ago
  7. Keith Andrew

    @Moonwalker1982 It’s not the Surface that’s performing badly, it’s the Surface RT. The Pro is doing quite well. Microsoft made the distinction in the presser – it’s the RT that has cost $900 million. Seems to be missing in this story, mind.

    #7 9 months ago
  8. MCTJim

    Since we have 5 of these, we are quite pleased. They just announced a price cut and its significant. Just wish I knew about it before we bought 5 of them :( Other than that they perform quite well.

    #8 9 months ago
  9. absolutezero

    I’ve had a Surface since around Christmas last year. Its alright, its a tablet, its nice to use.

    Its pretty pointless as a thing. I rarely have any real need to turn it on. I wish there were some more games, or apps or lots of things.

    Eh at least the Spartan game is alright.

    #9 9 months ago
  10. Cobra951

    @8: It’s the price that I found unfathomable. Here is a new, unproven product, trying to step on the iPad’s toes, with problems to resolve, with a laughable software library in comparison to its Apple target, and they wanted to sell it at iPad prices. Why not just get an iPad? Even a diehard Apple hater like me could not see a way around that logic. Significantly undercutting Apple’s tablet is the only way it has a chance.

    #10 9 months ago
  11. ps3fanboy

    your better of with the Xperia Tablet Z from sony, that is a fact.

    #11 9 months ago
  12. FeaturePreacher

    They’re probably going to scrap the entire rt line soon enough and just move forward with surface pro. I just hope they can get around to putting Haswell into it soon.

    #12 9 months ago