Microsoft CEO Steve Ballmer has admitted that the company built too many Surface tablets and that Windows device sales haven't been as strong as expected.
During an internal town hall event earlier this week, which was first reported by Neowin, both Ballmer and COO Kevin Turner talked on Microsoft's recent $900 million write-down on the Surface RT, which was caused in part by poor sales and too much stock.
"We built a few more devices than we could sell," said Ballmer, referring to weak Surface RT sales. The Microsoft CEO added that the recent 30% price reduction was required to improve sales.
If that wasn't bad enough, there was worse news in store for Microsoft. Ballmer went on to confirm that Windows 8 sales have also failed to reach the heights since launch.
"We're not selling as many Windows devices as we want to," added the chief exec, referring to phones, tablets and PCs.
There was one ray of light for both Microsoft and tablet fans, however. The Verge reports Ballmer confirmed Microsoft is testing new Surface tablets. Many believe that the Redmond giant is currently testing the new tablets with the Qualcomm Snapdragon 800 processor.