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."
