Microsoft profits flat due to poor mobile device sales

Microsoft's profits for the last three months of 2010 were barely changed, despite the popularity of its Kinect controller and strong sales of Office 2010 to businesses.

Sales in the Windows division fell 30% because of the launch of Windows 7 in the corresponding quarter of 2009.

The results were better than expected, as analysts had predicted weak PC sales would hit Microsoft harder.

Caroline Hepker reports.