CNN is reporting that Microsoft is now losing $1 billion each quarter and has already lost $5.5 billion on Bing since launch two year ago. David Goldman posted on CNN Money:

Microsoft has lost $5.5 billion on Bing since the search service launched in June 2009, but the company's search losses actually pre-date that. In fact, the software giant has never made money in its online services division. Since Microsoft began breaking out that unit's finances in 2007, the company has lost a total of $9 billion.

Microsoft claims that even though they are losing money they are gaining market share, which is very important in the long run especially in the search market. However, most of Microsoft’s market share gains are coming at expense of Yahoo, which is actually powered by Bing. Currently, Microsoft is not making any dent in Google and that is the biggest problem for Microsoft in the long run.