The largest company in the world, Microsoft, reported disastrous results for the April to June quarter. Their profits went down by almost a third. The group is also expecting financial difficulties in the following months. “It looked like a pretty tough quarter for Microsoft. The top line was very weak,” – Toan Tran from Morningstar.

It looks like the giant is another victim of the crisis. In 34 years of existence, Microsoft has never seen a decrease in profits. They definitely did not expect their profits to go down by 32%. Their only hope comes with the launch of Microsoft Windows 7. The operating system is expected to come out at the beginning of 2010.

Although Microsoft profits went down, their share values on the New York exchange are still rising. This is due to the company’s plans to reduce costs and to the fact that the launch date of Microsoft Windows 7 has not been delayed. As part of their cost reduction plans, the company will cut 1,400 jobs immediately and another 3,600 over the next 18 months.

To make things worse, Microsoft is under a lot of pressure from his competitor, Google, which announced an excellent rise in profits in the second quarter. Will Microsoft fall prey to Google? Time will tell…