Microsoft's price cuts eat into holiday season profit

Seattle

MICROSOFT has conjured up some attention-grabbing new products lately to help it restart growth. The company's results over the holidays has showed how badly it needs them to work.

The company said that net income fell during the last three months of the year as Microsoft cut prices in its Windows and Xbox businesses. The moves helped blunt inroads by competitors, which could pay dividends down the line for Microsoft, but they are not helping the computing giant make more money in the near term.