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Microsoft Kin phones a £156-million flop

Microsoft Kin phones a £156-million flop

Microsoft incurred losses of some £156 million from the flop launch of its social networking focussed Kin mobile phones, it has been revealed.

Poor sales of the Microsoft Kin range in the US saw the company last week announce it is to scrap the project and will not be launching the handsets in any other territories.

News of the scale of the losses that the computing giant suffered emerged in its latest quarterly earnings report and comes at a time when it is gearing up for the release of Windows Phone 7 powered smartphones in a matter of months time.

However, investors are unlikely to be unduly concerned as setbacks suffered as a result of Kin's failure over the last three months were offset by strong demand for its home consoles and the XBox360 online gaming service, as well as record revenues for its Windows 7 desktop operating system.

Few official details about the Kin's market performance have been released, but anecdotal evidence suggests that it only sold around 10,000 units in the US.

Microsoft has shown that it is still willing to support the Kin for those few that did pick it up, having recently updated its software with new feature such as an improved Twitter service.

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