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;

unfavorable changes in general economic conditions, disruption of our partner networks or sales channels, 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; and

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