Microsoft's days as an unstoppable force are over

Telegraph writes:

"And it's cutting 5,000 jobs, the first big layoffs in its 33-year history. The economic mess has highlighted Microsoft's vulnerabilities. It is time for boss Steve Ballmer to stop dabbling in unprofitable business ventures and focus on his exposed core product lines.
Even in the downturn, Microsoft remains the 800-pound gorilla of the software industry. It earned $4.2bn last quarter. But that's an 11pc drop from a year ago and well below what the market expected.
Shareholders responded by wiping some $14bn of value off Microsoft's market capitalisation following the announcement.Its layoffs are even more worrying than its earnings disappointment."

[Kinetix]

Looks like the media is going after microsoft now. Hey, everybody is fair game up in here.

[Genesis5]

Oh no! You mean they are going to have to share the market like all other companies do. As a consumer it is always nice to have choices.

[Chris399]

They'll eat that up like a puppy in a pool full of piranhas.

The media/ populace love to see giants tumble. The bigger they are the harder they fall, and the higher the ratings rise.

[Le Idiotce]

The article speaks about facts.

Unprofitable business ventures...like the XBOX 360 division.
And it comes as no surprise seeing how the XBOX division is the focus of Steve Balmers wrath.

Dont be surprised to see MS pull out of the console business and the 360 being MS last console.

And then what? Then you have fallen for their lies with respect to HD DVD format, the digital download thing, the 44 different 360 SKUs, their lies about HDMI and the harddisks, their lies about movies and more.

[GWAVE]

It's only fair. Microsoft replaced innovation and creativity for buy-outs. Their policy of playing "me too" and buying up any market they enter was going to catch up to them sooner or later. Hopefully they can learn from their mistakes and recover, but then again, when you're Microsoft and you don't actually admit your mistakes...well, it's kinda hard to learn from those mistakes if you don't admit they exist, isn't it?

[Cajun Chicken]

Couldn't of said it better myself.

[DaKid]

"Dont be surprised to see MS pull out of the console business and the 360 being MS last console." I disagree with this, but do you really want that to happen? Knowing that Microsoft Pulled out of the console business, which in the process would mean a staggering amount of people lost their jobs both domestically and abroad. and a possible decline in an industry I assume you are interested in (gaming). Same goes for Sony, I would hate to see either go. A fan war is one thing, hoping for the destruction of the competition is another. Just think about that for a minute. ;-)

[Agent VX]

Wow, what a bunch of unfounded lies you have told.

I doubt that MS will pull out of the console business, it is too important for them as they seek to invade the home media business. The 360 is doing very good, out selling the last 2 generations heavy weight, the Playstation brand which is taking a brutal beating this generation. The Xbox division is surviving, something in which Sony can't say as they lose their shirts on the PS3.

I like the 360, but if they don't improve on the quality of their machine, I will pass on them next generation and just stick with PC, or maybe Playstation if they have a better business plan. I have given up on Nintendo way back just after the SNES, in my opinion, their last good console. The Wii is just plain, a joke!!!

I don't like the fact that I have to pay a fee for online when the 2 other competitors are free. But playing on PSN, I see you do actually get what you pay for. XBL is easily without question, the better service by far, though I still don't like paying.

I really don't understand your childish rant on HD DVD??? Their was 2 competing formats, MS backed the wrong format. But having a PS3 and access to bluray movies, I just don't buy them because they are still way overpriced.

44 different 360 SKUs??? The arcade, the Premium and Elite, that counts as 3!!! Oh, I forgot, they added HDMI and changed the 20gb model to 60gb model. Sport, I don't understand the HDMI, Harddisk or movie thing either. But I realized quite early on your childish rant, their isn't one true thing you have said.

Anyway, it always suck to see people lose their jobs regardless of what company they come from. People have families and this can be devastating to them.

[Information Minister]

Make that 5 SKUs:
- Core
- Arcade
- Premium
- Pro
- Elite

[thats_just_prime]

Funny no one acted like this when sony laid of people plus MS still turned a profit unlike sony. Given the times I say they are still doing extremely well. I think wondows 7 will help turn things around for them too

[Oner]

Minister what about all the revisions of the hardware? How many in total are those? I think that is what Le Idiotce meant to imply with that crazy "amount" not SKU's as he said it.

[Maddens Raiders]

"1.2 - I've been watching this take shape for a while. If you think that the media is having it's way with Sony, wait till MS start to display weakness.
They'll eat that up like a puppy in a pool full of piranhas.

The media/ populace love to see giants tumble. The bigger they are the harder they fall, and the higher the ratings rise."

your post is spot on. Kudos.

[TheExodus]

I don't know, Vista may have been an abysmal failure but nobody's cross-grading to Linux because of it. MS is likely just readying itself for a significant decline in revenue as corporate customers reign in their IT budgets.

[360 man]

ive got vista its quite good to be honest (providing you have a good computer)

on the other hand linux is absalute garbage and hard to use

[GWAVE]

360 Man, I'd give your comment a fair response if I didn't already know that you were a raging Microsoft fanboy. Try Ubuntu. Just try it. And guess what? It's completely free.

[PotNoodle]

Ubuntu totally defeats the whole purpose of linux. Gentoo/Arch linux ftw.

[lordgodalming]

"Vista may have been an abysmal failure but nobody's cross-grading to Linux because of it."

I haven't gone to Linux, but after the better part of a year struggling with Vista on two high-end laptops (mine and my wife's), we have both gone back to XP and the difference is staggering. I suppose if I were really hard core, I'd go back to Win98. I'm hoping that the "reining in" that you're predicting is actually a come-to-Jesus with the whole Windows team to get either Vista or Windows 7 working like an acceptable retail product.

[hfaze]

"on the other hand linux is absalute garbage and hard to use"

N00b... :-)

[paul-p1988]

Your post is spot on, bubbles to you :)

Ubuntu is brilliant, once i installed it (dual-booted coz i thought i wouldnt like it as i had only used windows), i fell in love with it, and shortly after i wiped Windows from my PC and have never looked back. Everything i could do on Windows, i can do on Linux easier, and that even includes gaming (which, most of my games run better on Linux than they did on Windows, even though they were made for windows.....)

[ZILLA]

its a cheap toy,not a media MONSTER like the mighty PS3!!!PLAY B3YOND waaaaaaaaaaaaay B3YOND!!

[Le Idiotce]

which according to him was the end of 2008...

Im confused.

[GiantEnemyLobster]

sony? haha, good joke.

Apple? Oh whats that, steve jobs is in the hospital? Look at Apple stocks tumble!

[OOG]

ah well and then it will bounce back as usual with Windows 7 and more version of Microsoft Office...just like they always do...when corporations go for an upgrade again.... its like clockwork and happens every few years....

And since Windows 7 is getting pretty much a really good response lately... it may be the thing they need in order to bounce back....

but also this is a recession and its not like they are not still making 10+ billion in profit per year lmao

[pippoppow]

That they have a dominant PC OS division. If they had some serious competition in regards to operating systems like they do in the browser market then thing would be worse.

[Nathan Drake]

I think Google will announce their own OS in the not too distant future,with YouTube,Google Search,Gmail,Picasa,Google Maps,Blogger,and Google Chrome,its clear if they released an OS they could take a very significant chunk out of Microsofts marketshare.

[Mr PS3]

"Microsoft" and the words "Unstoppable Force" in the same sentence

AHAHAHAHAHAAHAHAHHAA

[Elven6]

If Microsoft was the only one laying people off then this article might have some credibility to it.

[kingme71]

Just shows that no one is immune to this recession. Sure PC sales and likewise MS product sales are down, that is to be expected. Now the recession alone isn't MS's whole problem. They are now competing with very nimble opponents in spaces they are no longer (or never were) the leader in.

In any case, I disagree with the author's statement that MS should abandon the less profitable businesses like the XBox. They worked all these last years to position themselves to where they are now with the XBox. I don't forsee them giving up on that effort and money spent now. They should do fine in the next generation of consoles provided they can regain customer confidence with their hardware (or just shut them up with another billion dollar warranty extension).

[No FanS Land]

just realised something.

"Microsoft's Xbox gaming console only entered the black in 2008 after seven years in the red."

It made me remember that the 360 had to regain the 4billon that MS lost with the original console.

[shelbygt33]

Those losses are already realized. You don't keep "losing" that money in future years. That's not the way accounting works.

The gaming division of Microsoft currently makes a profit. That's the bottom line.

[Tony P]

I didn't really buy the "Sony is doomed" talk and I can't say the "MS is doomed" speak rings of truth either.

[Kinetix]

99% of those articles aren't credible and shouldn't be taken seriously. I think most of us can agree on that.

[Sir Ken_Kutaragi]

...Sold my Micro$oft Shares!!! ;-D

They should drop the xBox 360 and Zune i think, stick to Windows...Hmm...that's cr*p to!!! ;-D

[SAiOSiN]

whatever. M$ was slowing down in 08' anyway. The price cut just put them on top. Now the people who wanted 360s probably already have them. When Sony does a $100 price cut it's game over.

[Jazz4108]

Yep, game over for Sony unless they really find away to make the ps3 profitable. Sony cant afford to looase another 100.00 on there system. So your comment has little to no merit unless you are speaking of game over for Sony.

[Shane Kim]

Bu, bu, bu...Bill Gatez toaldz me thatz I don't needz to worriezzz? Iz thatz threwz`? Hez zaidz thatz xboxz tweezixty was in0vativez0rz.

[Jerk120]

,,l,,

[doctorstrange]

Google is the new unstoppable force

[Timesplitter14]

I agree

I wouldn't be surprised if they started working on a new OS soon

[UltimateIdiot911]

Agree. I personally like Google a lot but I'm also a conspiracy theorist so I'm not eliminating the fact that Google is trying to become Big Brother.

[SAiOSiN]

Google has the Android OS which is being used in tablets and phones. wouldn't be surprised if we start seeing it in PCs.

[Snow]

According to this..Google will buy Microsoft !
http://www.youtube.com/watc...

Probably not..but interesting video none the less !

[Timesplitter14]

I bet they miss their 50$ milion now

[heyheyhey]

if Microsoft waver in the software sector, they're gone

one of Sony's strengths is being versatile and having a foot in many markets, most of which they prosper in.... Microsoft can't seem to achieve this (Zune, Xbox) and now it seems their hold over software appliances is declining, Vistfail being a large factor in this

maybe they can recoup if Windows 7 is as good as people say it is..

[FadeToBlack]

I don't Understand how some people can get such satisfaction from any news or hints of a company's demise. Especially in these economic times with companies laying off employiees and folding left and right. Its not good new for anyone reguardless what company it is. I remember seeing all the blog comments of people rejoycing over the closing of citcuit city. I wonder how much satisfaction they got seeing over 35,000 people lose their jobs?

[Primetimebt]

Only if all fanboys were investors Mircosoft/Sony probably wouldn't be were they were today.

[jack who]

so microsoft was the only one who layed off ppl of this year?

[ultimolu]

*prepares to see five hundred articles of how Microsoft is doomed*

Ooooh dear. o-O

[sit down droid]

thats why MS are just made a 4% year on year increase

[Why dis]

Look at 1.3 hoping and wishing.

So fanatical he makes up theories way out of line over nothing, in comparison to what he is saying.

PS3 would be more likely to be pulled.

[Consoldtobots]

can you take that girl off, she looks retarded.

[makingdamage]

I surely hope so, I hate monopoly!

[No Way]

It's just kinda sad that it had to be because of a world wide finical crisis and not because another company could take up the challenge.

[Enigma_2099]

... this recession is hitting EVERYONE.

[Erdrick]

win7 will save us from vista, xbox continues to do well... its just a big company taking a hit from the poor economy.

[djtek184]

Even Billy Gates was smart enough to jump out.