So increased expenditures in R&D and marketing, some payments made to Nokia, and slower than expected sales (I would assume 360 worldwide and Lumia in Europe) account for the losses. Makes sense.
I would imagine they'll be posting losses for a number of quarters (most non-holiday quarters) given upcoming investments into the next Xbox and XBL/GFWL integration into Windows 8 and Windows 8 phones, but a year or two after the release of Win 8 and the new Xbox they'll be in a very comfortable position.







