During its investor call last night company finally and officially confirmed that its poor performance of Surface RT line of tablets has cost the company US $900 million.

The report comes only few days after Microsoft announced a massive price cut for the Surface RT. According to various reports around the net, it is believed that Microsoft produced around four million tablets and sold only a quarter of that. Amy Hood, Microsoft's chief financial officer said :"We know we must do better. We are confident we are moving in the right direction".

On a similar note, Nvidia's vice president of computing products, Rene Haas noted that Nvidia is still commited to Surface RT and that "Surface RT is the very beginning of a long process and it is the first shot in a changing landscape." While Nvidia is still quite optimistic regarding Surface RT, most analysts are not and most of them agree that Microsoft and Nvidia are simply blowing smoke and do not want to scare the market by writing off the Surface RT.

Nvidia support for Surface RT does not actually come as a surprise considering recent rumors that Nvidia and its Tegra 4 chip are behind the upcoming Surface 2 tablet. Some sources suggesting that Qualcomm might squeeze its way into Surface successor as well but Microsoft might be playing safe with various SKUs powered by different chips.

In any case, all is not well for Microsoft and Surface RT as the company only got the US $900 million write-down from it.



Source: Computerandvideogames.com, Microsoft.com.