The company is estimated to be saving more than $9 billion in taxes that it would have had to pay to bring its overseas cash to the U.S.
The cheaper price represents a major shift for Microsoft, as does a decision to drop the $60 annual fee to access streaming content such as Netflix and YouTube.
Up 18 percent from last year, the revenue is the most spent in a single quarter, the Interactive Advertising Bureau says.
The update has been seeded to developers, but has yet to be made available to the public.
The company's results got a pick-me-up from an after-tax gain stemming from adjustments to its pension and benefit plans.
Google is spending £1.9bn to snap up Nest, a company that connects your home to the Internet.
Les Moonves suggests Amazon paid $700,000 per episode to his broadcast network for the right to stream the Stephen King sci-fi drama four days after broadcast, a first-of-its-kind deal.
Envisioning a Facebook Oculus Rift future.
The iPad Air, Apple's fifth-generation iPad, weighs just 1 pound, is 7.5mm thick and boasts its new A7 processor, making it eight times faster than the iPad 4.
The electronics retailer will offer the minimum credit for all working iPads and iPad Minis released after the iPad 2.