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Your MONEY: Windows PAIN; Dim view of Vista for DSG.

Byline: Edited by James Coney

PC WORLD and Currys took a pounds 20million hit because shoppers steered clear of Microsoft's new Vista computer software.

Owner DSG International was forced to cut back on stock and its shares fell eight per cent yesterday after bosses admitted the sales shocker would knock pounds 20m off profits.

DSG chairman John Collins said: "Stocks are now at normal levels and we expect to recover some of the lost profit in the rest of the year.

"We are well prepared for Christmas and are cautiously optimistic that our products will excite customers."

Microsoft Vista was launched for home computers in January, following a two-year delay.

It was intended to replace the existing Microsoft XP system but a series of teething problems and the reluctance shown by shoppers for the software slowed sales.

As a result, desk and laptop computers loaded with Vista, plus other software packages and accessories, remained on the shelves.

Despite the Vista problems - which saw profit margins slump to a measly 0.6 per cent - DSG said business had been good.

Currys saw sales increase by five per cent as demand for flat-screen HD televisions and digital SLR cameras was strong in the 24 weeks to October 13.

While shoppers snapping up sat-navs, iPods, laptops and video games helped sales at PC World rise by two per cent.

DSG has also completed its rebranding of Currys and Dixons.

All its high street stores are now called Currys.digital, while Dixons only exists on the net.

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Title Annotation:Business
Publication:The Mirror (London, England)
Date:Oct 19, 2007
Words:257
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