challenges to Microsoft’s business model;

intense competition in all of Microsoft’s markets;

Microsoft’s continued ability to protect its intellectual property rights;

claims that Microsoft has infringed the intellectual property rights of others;

the possibility of unauthorized disclosure of significant portions of Microsoft’s source code;

actual or perceived security vulnerabilities in Microsoft products that could reduce revenue or lead to liability;

government litigation and regulation affecting how Microsoft designs and markets its products;

Microsoft’s ability to attract and retain talented employees;

delays in product development and related product release schedules;

significant business investments that may not gain customer acceptance and produce offsetting increases in revenue;

changes in general economic conditions or the availability of credit that affect the value of our investment portfolio or demand for Microsoft’s products and services;

adverse results in legal disputes;

unanticipated tax liabilities;

quality or supply problems in Microsoft’s consumer hardware or other vertically integrated hardware and software products;

impairment of goodwill or amortizable intangible assets causing a charge to earnings;

exposure to increased economic and regulatory uncertainties from operating a global business;

geopolitical conditions, natural disaster, cyberattack or other catastrophic events disrupting Microsoft’s business;

acquisitions and joint ventures that adversely affect the business;

improper disclosure of personal data could result in liability and harm to Microsoft’s reputation;

outages and disruptions of online services if Microsoft fails to maintain an adequate operations infrastructure;

sales channel disruption, such as the bankruptcy of a major distributor; and

Microsoft’s ability to implement operating cost structures that align with revenue growth.