Broken Windows: How Microsoft Can Pull Ahead in the Tech Game

The company reports a loss but also record revenues. How can it pull ahead of the tech pack again?

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A CES attendee tests out the Windows Phone app experience in the Microsoft booth at CES 2012 in Las Vegas, Nevada.

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"I think that if you look at Microsoft's revenues, $18 billion or so in the quarter, and you look at where that's coming from, you realize that over half of it is coming from, effectively, sales to business."

That means room to improve in the consumer market. The company is working on revamping many of its products: Windows, Office, Windows Server, and Windows Phone, as CEO Steve Ballmer said on Thursday. If those can get out of office buildings and into the hands and pockets of consumers, it would go a long way toward ensuring future sustainability.

Danielle Kurtzleben is a business and economics reporter for U.S. News & World Report. Connect with her on Twitter at @titonka or via E-mail at dkurtzleben@usnews.com.