Microsoft layoffs: Is Vista to blame?

Yahoo Tech writes, "In Microsoft's public speeches and press releases, CEO Steve Ballmer has portrayed Windows Vista as nothing short of a wild success, an operating system that has sold millions of copies to adoring fans worldwide.

Alas, reality has finally come into sobering focus: Microsoft's recent earnings report show not just a $900 million revenue shortfall vs. earlier projections, but a serious weakness in one critical part of its business: "Software client revenue" (aka Windows Vista and remnant sales of XP), where sales are down 8 percent vs. last year. In comparison, the company showed growth in some of its other businesses, including the Xbox division (up 3%) and the server business (up a whopping 15%). Also to blame in the poor results: online services (such as Hotmail) and, of course, the Zune, which hemorrhaged $100 million in the last quarter as sales fell off a cliff."

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jack who3343d ago

nothin new here every one is laying ppl off


Yeah but if Vista would been a succes they would not need to lay off so many jobs.

NaiNaiNai3343d ago (Edited 3343d ago )


vista is actually starting to gain ground. after there latest updates there are plenty of people who are buying, plus the fact that its installed on all new systems, they end up making a profit off of it. Vista is not the reason. the current economy is the reason, thats like saying, is toyota having trouble because they make fuel efficent cars.
its erelavent to the situation at hand.


Kushan3343d ago

Vista IS a success, at least commercially. It's selling pretty well, most new PCs still ship with it (And that's where Microsoft makes most of it's money). Plus you have to think long term, a lot of what was done for Vista wasn't JUST for Vista, it was for the NT kernel as a whole. Most of those changes and updates will be around for years to come, though Windows 7, 8 and 9, as well as their server counterparts.
These layoffs would have happened no matter how successful Vista was.

XxZxX3342d ago

I would agree if the economy is to blame. but what happen to those gang that say MS is recession proof. What happen now. Blame the economy finally eh... I tell you this, if this keeping up, XBOX division is going to close down. Why? at least PS1 and PS2 has seen huge profit. XBOX is a major loss, XBOX 360 finally gain ground but still a major loss. For those MS Fanboys, since you like the spread FUD so much now, now it's ur turn to getting them. Be afraid, very afraid. Don't worry about Sony, like Samsung, the government will bail them out. MS, haha good luck with those fine in EU.

NaiNaiNai3342d ago

funny how you didn't say anything about the ps3 there. guess its in to much debt. everycompany has losses, and nintendos shortage at the start of the console war was a good thing.

+ Show (2) more repliesLast reply 3342d ago
Mr_Zkaar3343d ago

30%+ failures on Xbox, Vista has bombed. Take your pick.

Heldrasil3343d ago

Are you watching the economy? Sure MS has issues, but that is hardly the reason. If layoffs were because of "30%+ failures on Xbox, Vista has bombed", then can you explain to me why even Sony had done some layoffs a few months ago? Why GM is tanking? Why my state has an almost 10% unemployment rate? Hmmm, guess this whole layoff thing isn't a sign of the times and simply comes down to MS and their "30%+ failures on Xbox, Vista has bombed".

FantasyStar3343d ago

Heldrasil. don't waste your time with a fanboy. You'll thank yourself.

DJ3343d ago

We wouldn't have had millions of people deleting their Vista OS systems in exchange for XP or Linux. The fact that MS had to publicly announce a $1.3 Billion transaction from MS Corporate to the Gaming Division to cover Xbox 360 hardware repairs is very damaging as well. Lord knows how much they spent in the 20 months prior to that announcement.

Mr PS33343d ago (Edited 3343d ago )

Its That Contraption They Have The Nerve to Call a Console
The Xbox 360

Dogswithguns3343d ago

no one has the money to burn anymore. therefore, layoffs are everywhere.

trancefreak3343d ago

I like vista windows 7 will be better but vista is great on all my machines.

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