Microsoft has posted record revenue overall for the first three months of this year of $17.4 billion – a 6% hike on last year. But its success is bittersweet because performance of the division that looks after Xbox 360 and Windows Phone wasn't as good as the firm expected.

Entertainment and Devices is its name and it posted a $229m loss, compared to a profit in the same quarter last year of a buoyant $210m. But it's not all doom and gloom for Microsoft though because Windows and Office performed strongly.

Markets reacted well to the news and even though the firm is still trying to catch up with Apple – which has double Microsoft's market value. Their CEO said '"We're driving toward exciting launches across the entire company, while delivering strong financial results"

Revenues from the 7 Operating system saw a 4% increase, despite Windows PC sales seeing its growth percentage slashed from 14% to 1.9%. Ouch. People are just looking to make their old PCs work better instead of going all out for a newbie. Looks like Windows 8 - whenever that arrives – could be a real boon.