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Microsoft, Channel Stuffing and Desperation: Old Tricks for a New Era

Wall Street veteran Roger Ehrenberg writes: "Microsoft is in trouble, and this ain't no joke. Vista is a disappointment. Search is weak. Xbox is under siege from the Wii. Paul Graham recently posted that "Microsoft is Dead." Paul might have a taste for the dramatic but you can see where he is coming from.

Further, it has come to light that Microsoft, in an effort to embellish its perceived momentum in gaming and its window into family rooms the world over, has been using the oldest and shabbiest of retailer tricks to juice sales figures for the Xbox 360: channel stuffing.

Strong companies confident in their strategy and performance don't do these things. They don't have to. What kind of a message does this type of behavior send to the investor community and, more importantly, your customers? Weakness. Fear. Short-term thinking. Nothing that represents a positive signal for a better, brighter tomorrow."

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Bigmac5733670d ago

Wii and PS3 are rapidly closing the gap. The Elite will only put the nail in Microsoft's 360 coffin.

Marriot VP3670d ago

yes the console's going to be doomed because more people will buy or re-buy the 360 and trade in their previous premium so more units get into circulation.....in trouble, riiight. There are so many more important problems that could spring up.

I'm interested to hear you response too, i'm waiting.

MissAubrey3670d ago

How fnckin old are you?! all I know is that you're stupid.

Marriot VP3670d ago

well this is hilarious, apparently 7 people can disagree with me, but not one of those people want to point out a flaw in my statement.

Come on, PROVE YOURSELF.

BIadestarX3670d ago

Yes, they are so dead. Man, I wish my company was a dead as they. Look at that... they are still making huge profits. weird.

Also, it's not that vista sucks it's that windows xp is still good.
"Vista is a disappointment" how is that? People just don't have reason why to invest in a new OS when their current OS does the job.

hfaze3670d ago

I can tell that you haven't had the misfortune of working with Vista yet... I've got seven PC's up here at work running Home Basic, and they are subject to some of the strangest issues I've run into yet...

Outlook 2003 would come up and PEG the CPU on a dual-core machine, but only on SOME of the PC's. 1GB of RAM is realistically not enough (gives you the performance of an XP machine running 256MB of RAM), and those stupid "security" notifications that do nothing more than confuse the user into clicking Yes on everything...

It's enough to make me REALLY appreciate Linux and MacOS X that much more... After five years in development, I sincerely expected a LOT more out of Vista...

"Over-hype and under-deliver", looks like that applies to Microsoft as well...

uxo223670d ago (Edited 3670d ago )

I'm an IT manager at engineering firm and I have migrated all of our desktop to Vista Business. I haven't seen any of these things that you speak of. The only thing I see as a problem with some of my users having to learn the new features. If you've dealt with corporate users, you know how you get the old guy in the room down the hall that still wants to use DOS 6.0 for everything.

Otherwise, Vista is working very well in our company. It's amazes me how some people have so many wierd problems right out of the box. I thinks it's because they start tweaking things and they really don't know what their doing.

Perhaps your machines are barely meeting the minimum requirements. I would wonder why someone would invest in a dual core machine and place only 1gig in it. Also, 7 machines running vista home basic, this is obviously a home workgroup and not a bonified network with domain controller. (strange arrangement to have home basic at work.)

shotty3670d ago

I have Vista Premium and the only issue I have is that Im running 1GB which is alright but loading up a game and you can see studders, 2 GB will be fine but im using ready boast to add 512MB of RAM. I had it for 2 weeks so far and no crashes and it runs very smooth.

techie3670d ago (Edited 3670d ago )

Lol. Take it with a pinch of salt and read his musings. It's interesting and dare I say has a grain of truth with it.

**edit**To everyone below. Hear this. I personlly do not agree with the article. I think it is off in a lot of places. Why did I post it? Hmm...because I was on Kotaku and they had this as one of their news stories. I thought it was best to actually link to the original article rather than Kotaku.

Number two. This post was actually editted by News bot and approved straight away...so no reports.

Three. This is a company we're talking about. You don't need to fall in love with a company and serve it...we're turning into machines in this day and age where capitalism and money making companies rule what we think.

This is an analyst who does some research and puts forward an argument which you either find compelling or you do not. If you don't, say why...please do not start attacking members or the analyst.

Finally, there have been plenty of FUD articles posted about Sony, and your saying when one is posted about Microsoft, that the person who put it forward for approval should be banned?

WTF is going on. If you people think like this, I have lost respect for this whole site and everybody on it. You can frankly get f*cked and I won't bother coming here again. If you can't take a little bit of criticisn of a company then you're lame.

Please reply to me why I should not have posted this? Why? If it's another bias article SAY WHY. I wouldnt have found this if I didnt go on Kotaku...I don't go digging around. Without an apology this site can f*ck itself up the ass in the words of David Jaffe. Punish my bubbles as well..if you think I'm a bad person for posting this then bloody punish me...who said democracy was the best system hm?

PSN Starfleets3670d ago

I dont even need to read the article to know these simple facts.

1. Vista is not perfect but its another Windows Operating System that everyone including the haters will be using within another year or two. FACT.

2. Xbox360 is fine. It could do better but no software is going to push it until the next line up of games are released like Forza 2 and Mass Effect.

3. Profits..? This is Microsoft. Profits in the gaming industry for them isnt a word. But then again, its more of a word than it is for Sony right now.

Karebear3670d ago

I absolutely HATE the mentality that "Windows sucks, but eh what can you do?" There are other options. I went Microsoft free in 2000 and never looked back. You can still do gaming on your PC using cedega (www.transgaming.org) under linux. I pretty much just switched all my gaming needs to a console at the time though. My PSP and PS3 keep me pretty satisfied in the gaming side of things. As far as productivity I can do anything I want on my linux box that I could do in Windows. Plus I have the added benefit of total control of everything, security, and stability.

Look at it as a challenge to learn new things :) Heck with the latest Ubuntu stuff you don't even really need to learn much of anything.

ben hates you3670d ago

on the news MS stated they have made 1.2 billion off of the xbox 360 since its release i think that is a decent profit so no i don't think that the xbox is dead why would it be it still sells so no its not dead