Microsoft Lost $900 Million on Surface RT in Q1

Despite $4.97 billion in earnings, Surface RT still struggles.

Today, as part of its Q4 earnings report, Microsoft announced that it has incurred a $900 million loss due to its struggling Surface RT tablet. While the company otherwise reported $4.97 billion in earnings from $19.9 billion in revenue, the Surface RT cost the company a significant sum as a result of "inventory adjustments."
The news comes on the heels of Microsoft's $150 price drop on the Surface RT, now carrying a $349 MSRP for the 32GB model and $449 for the 64GB version. While Microsoft has not released specific sales statistics, IDC figures for Q1 placed Surface sales at under a million, with the Surface Pro accounting for a majority of total units sold.

Based on a stripped down version of Windows 8 and running apps optimized for touchscreen interfaces, the Surface RT acts as Microsoft's alternative to the iPad and Android-based tablets. However, with a limited array of compatible apps and the Surface Pro offering a far greater level of versatility, the Surface RT has struggled to find an audience.

For more, check out our comprehensive reviews of the Microsoft Surface RT and Surface Pro.
Scott Lowe is IGN's resident tech expert and Executive Editor of IGN Tech. You can follow him on Twitter at @ScottLowe and on MyIGN at Scott-IGN.