Software giant Microsoft has reported that its profits have fallen 10.6% in the three months to the end of December compared to a year earlier.

However, sales for the quarter (£26.5 billion) were better than expected with good sales of Xboxes and overall the company sold around 6.6 million consoles. 

In a statement chief executive Satya Nadella said: "We are taking bold steps forward across our business, and specifically with Windows 10, to deliver new experiences, new categories and new opportunities to our customers,"