Frankly Speaking: For Microsoft, the pain is just beginning

Microsoft cuts 5,000 jobs. That's the big news of the week. Not just because the layoffs will cut one in 20 of Microsoft's 91,000 employees. Not only because it signals just how hard Microsoft has been hurt by the failure of Vista and by shifts in the way big customers license and use software. Not even because of the grim sign it represents for the rest of the IT industry.

No, it's big because it means Microsoft has begun to hit bottom.

And it's about time. For the past couple of decades, we've been referring to Microsoft as the new IBM. But Microsoft has never learned the lessons of the original IBM - not even the ones that Microsoft forced Big Blue to learn.

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Nathan Drake3610d ago (Edited 3610d ago )

If Windows 7 fails to convince people it's much better than Vista,Microsoft will officially be in serious trouble.

'Cause Firefox is dramatically running laps around IE,Windows Live Search is nothing compared to Google Search,Gmail is becoming the standard for people seeking Email accounts,Open Office is slowly but surely taking a bite out of Microsoft Office's marketshare,Microsoft Zune has completely failed against the iPod,Microsoft Silverlight has completely tanked against Adobe Flash,and finally,the Xbox brand has failed yet again to tap into the casual market.

Just wait until Google announce their OS.

Graphics Whore3610d ago

If google announces their own OS then that's gonna really segregate users. I for one am all for it, I would use a google OS.

BattleAxe3610d ago (Edited 3610d ago )

This shows how much bigger Sony really is over Microsoft.

Sony - 176,000 employees (Global figure)

Microsoft - 91,000 employees (Global figure)

dcbronco3610d ago

In number of employees and size sure. But Sony and Microsoft are companies meant to make money. And Microsoft is , has and for the foreseeable future will run circles around Sony when it comes to profit. 11% down when you are making over 16 billion in profit makes you much bigger than a company that looks like it will actually lose 1-2 billion dollars like Sony.

Firstkn1ghT3610d ago

Sony bigger than Microsoft? LMFAO! Dumbest comment I have ever read on here.

Chris3993610d ago (Edited 3610d ago )

If you think the media has enjoyed Sony's fall from grace, wait till MS stumbles.

8.5 billion dollar lawsuit pending in the U.S.. 45% share depreciation THIS YEAR. Operating profit lowered by 30 BILLION over the past few years (they are just burning through cash).

Oh, and there is ANOTHER anit-trust suit happening in Europe.

I'm not trying to be a naysayer, but these are serious issues and we have only just seen the beginning.

- C

P.S. Firstknight, Sony has a greater survivability in their portfolio so long as they continue to innovate, they can keep current and create/ drop products as needed. MS is predominantly software based and competitors have been eroding their consumer base for years. If Google releases and Operating System or offers full Linux support, it's pretty much over.

paul-p19883610d ago

I believe Google already have a desktop, its a Linux one, but i think its in the beta stages at the moment. I heard bout it just before they announced there mobile phone, which runs a very similar version of the OS.

I might be wrong, im trying to find the google desktop on a couple of linux sites but cant find it yet :(

gaffyh3610d ago

@FirstKnight - As usual, you retarded fanboys don't know wtf you are talking about. Sony IS a bigger company than MS, it is easy to see that in Sony's products which range from Cameras, MP3 Players, Mobile Phones, Laptops, Computers, TVs, Radios, Consoles etc.

MS on the other hand make Windows/Office, Xbox 360, Zune, MS Surface and a few peripherals. Which company is bigger? Even looking at BattleAxe's figures alone you can see that Sony is the bigger company.

But I guess a 12 year old like you wouldn't understand.

Firstkn1ghT3610d ago

Oh Gaffy, please tell me you were just kidding! I refuse to believe that somebody can be so ignorant. Cmon man, you are kidding, right?

Man_of_the_year3610d ago

Well what exactly are we referring to when saying which company is bigger - If we are talking about a companies overall worth - MS is much bigger than Sony - if we are talking about products and departments and landspace that companies take up then yes Sony is bigger.

Remember - MS since it is mainly a software company has a much lower operating cost than Sony has - It costs lots of money to make sony products - its not like the parts just grow on trees and can be harvested from the soil.

SaiyanFury3610d ago (Edited 3610d ago )

It's nice to see an article that, for once, talks about Microsoft and the trouble they're going through. I for one, am sick of all the anti-Sony articles flood the media these days.

Man_of_the_year3610d ago

I am sure you were also sick of all the anti-MS articles about RROD, Disc scratching and micro transaction......right, RIGHT?

didn't think so

+ Show (8) more repliesLast reply 3610d ago
thebudgetgamer3610d ago

the writer comes of as vindictive as to say yea take that Microsoft.
thats what goes for journalism now a days.


OuterHaven3610d ago (Edited 3610d ago )

OMG is Microsoft done for? Is it over for this gentle giant? / sarcasm. Recession is hurting all, just the other day GM was passed by Toyota as largest auto-maker in 77 years.

SixAmpFuze3610d ago

I agree also with some of the points and As a xp and vista user i do think MS needs to enhance the os a little more but not with flashy looks but with more features.But thats the biggest problem for MS,they cant put certain apps into the OS because they will be hit with a lawsuit again like they did with EI.Personally i find this stupid because apples OS is more of a suite than Windows and Apple should be facing the same if not worse lawsuits because their apps built into their os are way stronger than appz in windows.

ultimolu3610d ago (Edited 3610d ago )

But Sony's still doomed, of course....right?

The economy is affecting every large company out there.

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