<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF MICROSOFT CORPORATION AND HAS BEEN RESTATED TO REFLECT
THOSE MATTERS DISCUSSED IN ITEM 5 OF FORM 8-K, FOR WHICH THIS SCHEDULE HAS BEEN
ATTACHED AS AN EXHIBIT.
</LEGEND>
<RESTATED>

                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-END>                               DEC-31-1997
<CASH>                                          10,105
<SECURITIES>                                         0
<RECEIVABLES>                                    1,081
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                11,636
<PP&E>                                           2,923
<DEPRECIATION>                                   1,445
<TOTAL-ASSETS>                                  16,840
<CURRENT-LIABILITIES>                            4,496
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                        980
<COMMON>                                         6,104
<OTHER-SE>                                       5,260
<TOTAL-LIABILITY-AND-EQUITY>                    16,840
<SALES>                                          7,126
<TOTAL-REVENUES>                                 7,126
<CGS>                                            1,147
<TOTAL-COSTS>                                    1,147
<OTHER-EXPENSES>                                 3,306
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                  2,972
<INCOME-TAX>                                     1,176
<INCOME-CONTINUING>                              1,796
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     1,796
<EPS-BASIC>                                       0.37<F1>
<EPS-DILUTED>                                     0.34<F1>
<FN>
<F1>EPS PRIMARY AND EPS DILUTED HAVE BEEN RESTATED TO REFLECT STOCK SPLITS
</FN>