I think that is a /Revenue miss of some size....even for Microsoft.
From Marketwatch:
After Hours
/quotes/comstock/15*!msft/quotes/nls/msft
$
23.80
Change
-1.76 -6.89%
Volume
Volume 106.06m
Jul 23, 2009 7:59 p.m.
AND:
Microsoft, Amazon shares slide after quarterly results
***************************EXCERPT******************************
Revenue fell 17% to $13.1 billion, reflecting a sharp slowdown in software sales as demand for new personal computers software amid the economic downturn. Analysts polled by Thomson Reuters had pegged earnings at 36 cents a share on $14.37 billion in revenue.
Especially right after Apple recently announced so much great news. There's only so far MSFT can blame "the economy" and "the market", at the same time when their main competitor is doing so well, with a product line that sells at higher prices (because Apple doesn't do bottom-feeder).
I hope for Microsoft's sake that Win7 does well. Otherwise they are going to be in -real- trouble in about two years.