The recent earnings announcement from Microsoft has prompted several stories across the tech web landscape which focuses on the dysmal earnings state of Windows Phone 7.  At the moment those numbers do show a lackluster performance financially however, I do not believe that is going to be the end of this story.

Why? Well you only have to look back at Xbox when it first came out and where it is today. 

The Xbox in its early days was a money drain as well.  Many prognosticators said Microsoft should dump that division as soon as possible during those early days.  What did Microsoft do? They continued to develop Xbox and associated technologies.  That turned into the Xbox 360 and here we are almost 6 years later and Xbox 360 is the staple of the Entertainment Division at Microsoft which grew by 45% in the last year.

Believe me they are not going to abandon the Windows Phone 7 platform.  They admittedly came into the smartphone arena late but their perseverance is going to see Windows Phone 7 succeed beyond what anyone outside of Redmond and the Microsoft Campus thinks will happen.

The next step in that growth is Mango which is scheduled to be out this fall and is already in the hands of the cellular carriers for testing and eventual distribution.

Just watch what happens.