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Windows and Office have always been the big money makers for Microsoft. Vista is doing poorer that expected at retail, and I expect many large companies are putting off MS server and Office upgrades to save money.

It is not like MS will not make $ billions, it is just not as many billions as they have hoped for.

The EDD division does have the advantage of having Mac Office sales to prop its profits up, and I doubt they will scrap Zune. 360 is doing fine, so EDD should come out relatively fine.

I am not sure how many people work for MSN or on the IE team, but they are getting killed by Google in the search market and IE is fighting a losing war.