NEW YORK (CNNMoney.com) — In an era where the Web is king, Microsoft is no longer regarded as a growth stock. But if the company’s bets on new businesses pan out, it could become one again.
Microsoft (Charts, Fortune 500) has had to play catch-up in many areas – video games, MP3 players and online advertising – with varying degrees of success.
The company’s new “Halo 3″ game and Xbox console are increasingly important for Microsoft. The entertainment and devices division makes up 12 percent of Microsoft’s revenue and is the company’s fastest growing, with revenues increasing 28 percent in fiscal 2007, compared to overall sales growth of 15 percent.
But the Zune MP3 player, which is also part of the entertainment and devices division, failed to capture the attention of the iPod generation.
