Microsoft said its non-gaming revenue fell $80 million in its third quarter on decreased sales of its Windows Mobile operating system and Zune devices.
Windows Mobile has been steadily losing ground to Google’s Android operating system. The operating system has lost about 21 percent of its market share since November and now holds just 15.1 percent of the U.S. smartphone market, according to the most recent estimates from comScore.
Android more than doubled its market share during that same period and now holds 9 percent of the U.S. market.
Microsoft’s entertainment and devices division is its second-smallest division behind its online services segment. The devices division swung to a profit of $138 million on sales of $1.67 billion for the third quarter ended March 31. Last year the segment lost $67 million on sales of $1.63 billion.
Overall, Microsoft made about $4.01 billion on sales of $14.5 billion, improving from the same period last year when it made $2.97 billion on sales of $13.65 billion.
The third quarter was a busy one for Microsoft’s mobile division. The company unveiled its new Windows Phone 7 operating system and announced the Kin, social-media-friendly device that will be launched with Verizon Wireless in May.