Microsoft's Ballmer Warns Of Downturn Revenue Impact

Microsoft chief executive Steve Ballmer warns that the giant software company's revenues will take a hit by the global economic conditions. "Revenues in our industry, and in our company, will be affected by the economic conditions," Ballmer tells Reuters. The company recently revealed declining profits in the fourth quarter of 2008, and announced a plan to cut 5,000 jobs as a result. In the video game space, where the company makes the Xbox 360 hardware and Xbox and PC games and tools, Microsoft closed Flight Simulator developer ACES Studios, and Games For Windows boss Chris Early was let go in the initial round of layoffs. Microsoft is also taking a closer look at UK Banjo Kazooie developer Rare, considering scale adjustments that may include a "small number" of layoffs there.