News

Microsoft Seeks Hardware Revenue in Piracy Markets

Microsoft sees potential to sell computer keyboards, mice and other hardware in emerging markets where software sales are hampered by widespread piracy.

Microsoft Corp. sees potential to sell computer keyboards, mice and other hardware in emerging markets where software sales are hampered by widespread piracy, a sales executive said Wednesday.

Microsoft has struggled to make money in countries such as China and Russia where piracy of its flagship Windows operating system and Office business software remains rampant.

Microsoft Vice President Mitch Koch conceded that hardware sales are only a small part of Microsoft's overall revenues, which are dominated by Windows and Office sales, and that hardware doesn't have the high profit margins of established software.

But Koch, who is in charge of Microsoft's worldwide entertainment and devices retail sales, said the company's keyboards, mice and other computer peripherals are profitable, although it continues to lose money on its Xbox 360 videogame consoles.

In July, Microsoft warned that its latest foray into hardware, the Zune media player that will be built by Toshiba Corp. to compete against Apple Computer Inc.'s iPod, will not be immediately profitable.

At a conference for journalists on its Redmond campus, Microsoft unveiled several new devices, including a wireless keyboard designed to tie in with the forthcoming Windows Vista operating system.

Another gadget, the Wireless Notebook Presenter Mouse 8000, is a four-in-one device that can be used as a mouse, a slide presenter, a laser pointer and a media remote. It comes out next month and will cost $99.95.

Featured

  • Report: Cost, Sustainability Drive DaaS Adoption Beyond Remote Work

    Gartner's 2025 Magic Quadrant for Desktop as a Service reveals that while secure remote access remains a key driver of DaaS adoption, a growing number of deployments now focus on broader efficiency goals.

  • Windows 365 Reserve, Microsoft's Cloud PC Rental Service, Hits Preview

    Microsoft has launched a limited public preview of its new "Windows 365 Reserve" service, which lets organizations rent cloud PC instances in the event their Windows devices are stolen, lost or damaged.

  • Hands-On AI Skills Now Outshine Certs in Salary Stakes

    For AI-related roles, employers are prioritizing verifiable, hands-on abilities over framed certificates -- and they're paying a premium for it.

  • Roadblocks in Enterprise AI: Data and Skills Shortfalls Could Cost Millions

    Businesses risk losing up to $87 million a year if they fail to catch up with AI innovation, according to the Couchbase FY 2026 CIO AI Survey released this month.