Microsoft in deep trouble?

Internet Explorer, MSN, Windows, Office. Four of Microsoft's biggest products are under attack. What does this mean for Microsoft and the Xbox 360?

[Fishy Fingers]

Almost thought Bruce had written a negative MS article, but no, he spun it around at the end to belittle Sony (surprising) and Nintendo. Even though Nintendo are destroying both MS/Sony. But that doesn't count because it's not in HD right? Or is it easier to simply ignore the competitor beating you to make you chosen platform seem better?

Is he suggesting that MS may move more toward gaming than concentrate on their falling OS share? Because thats ridiculous, Windows (and corresponding software) is MS cash cow, it's what allows them the opportunity to fund their gaming division.

"Microsoft are in the middle of one of the biggest shifts that any major corporation has ever made. From an IT company that did a bit of gaming to a consumer media company that does a bit of IT." Ummm... No.

[pathetic fanboys]

i think they still sit at about 90%(i'm sure i read that the other week on here), when they are down to 50%, perhaps people can start asking questions. until then, anything else is just speculation.

[Fishy Fingers]

Well, Apple have seen a 7% share and expected by many to hit 15-20% by end of 2009 and Linux is obviously gaining a lot of ground, perhaps not so much in the PC domain, but on a commercial side they certainly have.

Vista has been a disappointment, I'm sure there is cause for concern (not worry, but some concern) for MS regarding their OS share, admittedly they're still way ahead of the pack but Windows are in the decline in the home space. Windows 7 could be a very important piece of software for MS.

[agmsd]

You're right... I think the only thing that make still using Windows on my dual boot operating systems with Ubuntu Linux is the fact that there I still need Adobe Products. In think with the move taken by many companies to support Linux after it began to have install base will make it even more attractive to users. I think if adobe , Autodesk and Others which produce largely in need applications supported Linux we will see the end of Windows sooner than expected.

[SL1M DADDY]

People, we all know this crap journalist and we all have learned that he is in fact in bed with MS. Move along and forget you ever saw his sad dribble and for goodness sakes, don't click the link and give him hits.

[el_bandito]

@AGMSD

I truly agree with you. I am a heavy user of Autodesk products and am stuck with PC all the way. I bet several others too. I hope Autodesk would offer native Mac OS versions of their software. As soon as these programs become genuinely and perfectly compatible with the other OS, a lot of people might jump to Macs soon.

[Coheno]

Ohh noes, not Bruce again!yeez...*sigh*
Thought exactly the same, but as you said it, spun it around..

[gaffyh]

Bruce on games = Do not read.

[SaiyanFury]

Umm, can someone illustrate to this guy that videogames have been around since the days of the first Windows OS? That means 25 years to those of you who are too young to know how far back that goes. What is it with this guy? Use a title to sound like he's badmouthing MS but in the end ends up defending MS and elevating them whilst attacking Sony and Nintendo. I thumb my nose at this article.

[The Lazy One]

linux wouldn't be a great main stream OS. Because it's open source, it would be way too easy to hack. The benefit of windows is that it's closed. Once linux got a significant part of the market, it would be so easy to hack it would be ridiculous.

[Gondee]

All this means, is that MS will have to do some real thinking now. Competition is the best thing for us.

[mikeslemonade]

Microsoft can get rid of some of the unprofitable divisions. The divisions that are most in danger are the 360 and the zune because they are the newest and they are not making them money.

[The Lazy One]

They aren't making them money NOW, but they're projections are a lot better than some of it's other divisions.

360 is breaking really close to even, and zune could if they redesigned it with a pricepoint that wasn't just $10 different than the comparably ipods. Microsoft just needs to understand that Apple's brand name is worth more than $10 when you're dealing with $100+.

[Bruce Everiss]

I'm such a dumbass...

[BlackCountryBob]

You said it!

I was starting to worry about you Bruce, it has been a while since your particular brand of one sided pointless articles have been seen on N4G. You have competition though now because HipHopGamer has moved to your platform of sensational headlines to attract hits so you are gonna have to up your game.

Anyway, dumb article but it is impressive you were able to twist a story about MSN and Windows losing popularity into a pop at Sony.

[Pixel_Addict]

an intellegent person can agree with a Bruce on games! I feel sorry for gamers name Bruce.

[Ilikegames76]

stick to making software, at least you can patch the software.

[el_bandito]

" Sony, decided to make so many strategic and tactical mistakes and to basically throw away their market dominance"

How can mistakes be "strategic and tactical"?

[Kushan]

I believe he's saying that the tactics and strategies they used were mistakes, as opposed to the mistakes themselves being tactical or strategic.

[el_bandito]

Oh I see. Thanks for the enlightenment buddy. I thought the sentence was poorly constructed.

[callahan09]

He also said they decided to make those mistakes. Sounds off to me, too. Somehow I don't think they intended to make any mistakes. For that matter, the jury is still out as to whether or not they even made mistakes. The PS3 could still work out in Sony's favor, especially because it costs much more than the 360 and has much less software and yet is selling very admirably in comparison to its cheaper rivals. Whenever they decide to drop that price, it'll come alongside an obviously even more massive library of quality games, and I think you'll see the PS3 take off like never before.

[yojoe26]

that is hysterical! i didn't even catch that....

[alexM]

OMG people are approving articles from that site again.

everyone please report it as SPAM

[Kleptic]

and once again he completely misses the mark...

for anyone that won't read it (as I normally don't, but have to admit I was intrigued to see him trash his parent company)...its basically him blabbing on about how MS's 'long term' goal in the console industry is a complete success (I predict nearly infinite contradictions that you could point out in that statement)...yet they are losing grasp on everything else...

as usual, he makes it sound like MS is dominating the gaming industry...which they NEVER have...but he also makes it sound like windowns is in trouble by a number of different alternatives...home use?...not even close...business use?...probably, but that is nothing new...MS has been sliding down the business crapper for years...he makes it sound like this happened yesterday...

[Bill Gates]

Jump Out STUPIDS......AAHAHAHAHHAHAH

[zag]

Sony already sells 3 to 5 times the amount that MS sell each week.

[gamfreak]

already in deep SH*T to have got involved in the gaming console since the XBOX era and not to mention now, nothing is gotta save them but themselves. Hope they will learn a lesson and not to treat the BOTS as a moron. BOTS FTW.

[littleBIGfail]

M$ in deep deep trouble oh yeah !!

[Sir_Ken_Kutaragi]

BanjoFail
or
ToHumanFail
or
(theres are LOADS of games that Failed on the xBox 360)
or
xBox360Fail
(For the last 3 months in the US at it's cheaper price it STILL CAN'T beat the Wii???)
F-ING MEGA FAIL!!! ;-D ;-D ;-D
or
VistaFail
or
ZuneFail
or
OriginalxBoxFail...
...It goes on forever!!! ;-D
(I can't understand why people like that company for???Oh well)

[littleBIGfail]

but it won't sell more copies of LBP !!!

[Sir_Ken_Kutaragi]

xBox360HardwareFail (RRoD, etc etc) (Jasper???won't save you!!!) ;-D
+
xBotZombieLemmingsFail (At Life)
+
NXEFail (Baby Avatars for Hardcore players!!!) PRICELESS!!! ;-D ;-D ;-D
+
etc etc...

[Kaz Hirais Scrotum]

Keep me on your chin my little crabs, and I promise not to let the scary xbox turn you from your master.

[Kushan]

"Four of Microsoft's biggest products are under attack. What does this mean for Microsoft and the Xbox 360?"

Simple: Bugger all - it's a completely unrelated market. The only effect it has is reduced profits for Microsoft as a whole, but they're still making shedloads of cash.

[MorganX]

All the way around. Microsoft makes better products, competition spurs better products. Take Google Chrome. It's like getting a broadband upgrade its so fast, but, it's UI could use a little polish. Still a better product sure to make IE better.

Vista SP2 is looking good. A bit faster and quite stable with Bluray working great with the live file system.

Competition is good.

[Citizen Cook]

Is this true?
I really don't want to rebuy another PC at the moment, but at the same time i have to have latest and best of everything...

Hense i brought an Xbox 360 and not a PS3rd.

[zag]

Yes because Vista has made the projected profits.

I don't think WIn7 will do much better as MS is wanting to make window repy on net connections etc and people don't seem to want this crap going on their machine.

[Danja]

The thing is..ppl now have alot more choices now than they did back then...

IE is no longer the best browser everyone knows it..Vista was just a compete disaster on a whole different level..

Zune isn't taking off as M$ had hoped...MSN..is just there but no-one uses it...

the Xbox 360 is the only thing that's going really well over at M$ these days , but they're the worlds biggest software publisher so...they'll be fine with a couple of failures and shrinking market share....ppl are just smarter and prefer quality these days..

[Anon1974]

The last 3 fiscal years for MS games division looked like this. Loss: 1.2 Billion, Loss 1.8 billion, Profit $400 million.
It doesn't take a math whiz to figure out that MS needs 6 more years of earnings from the 360 at this rate to even break even. How long do you really think a company will support a losing business before trying a different strategy? That's what gives me chills when MS started talking about a "cheaper, digital distribution hub"
We don't want or need another Wii out there, but you can't blame Microsoft for eyeing that route after the billions lost on the original Xbox and with the 360's money making prospects not looking good.

[Danja]

lets be a lil honest here do you really think M$ cares right now about there loses on the 360...yes they do , but at the same time it seems to me that they're willing to take loses so they can gain even more market share.

[tudors]

will not remain in business, MS have there fingers in a lot of pies and are smart enough to be aware of the problems they are facing and will always be working on a solution, DLC will be big and there gaming division will survive and do well. There OS and other software problems will need a big overall, it will not be so long before we have OS software/webmail/browser etc built into our TV's, but we will always need security and we will always need a company like Microsoft to be a part of softwares involved in having a good online source with the proper security. Firefox is fantastic but the only reason that Explorer has had all the security issues is because it has been the choice of the hacker, the more main stream Firefox becomes the more likely it is to be hacked, MS are always a target for hackers which makes thing more complicated, as far as the OS is concerned MS need to offer Vista buyers free upgrades to there next windows version.

[bviperz]

games just play better on windows os. Hence games for windows...

[ultimolu]

Love how this guy manages to throw Sony and Nintendo in the mix when his title states: 'Microsoft in deep trouble'?

What the hell does Nintendo and Sony have to do with the article to begin with? He couldn't go without mentioning those two companies could he...

Sony didn't throw away anything. They were just arrogant in the beginning and are learning things the hard way. They're getting back on track and will continue to do so as time passes by.

[kwyjibo]

Of course he had to mention Sony and Nintendo, just as he mentioned Google, Firefox and Linux. If you want to provide any kind of analysis to a firm, you're going to have to look at the rest of the market.

Microsoft do not exist in a vacuum, no matter how much you think they might suck.

[ultimolu]

That's not the point I was making.
It seemed as if he was taking cheap jabs at Sony and Nintendo.

[Tony P]

Sony has made missteps; this is true. What's more the writer goes on to link you to a source (albeit another article by him, ha). So I don't have a problem with that one.

But I dunno how you can lampoon the Wii's "toy" status then spin it like it's a great thing for MS. Sure, MS gets a nifty share of hardcore gamer dollars, but that's scraps compared to the unholy legions of Wii owners.

[Marceles]

bruce and hiphopgamer should join forces

[Mutley416]

M$ in trouble...
With the Global economy the way it is, alot of companies are in trouble.

People are really starting to like there Macs, and Linux-

but XP is still the Gold Standard- Watch to see what happens with Yahoo-
M$ will be fine. Bill can Roll with the Punches!!!

[snoopgg]

was a major flop. They need to get thier heads out of their arses!!!! Hey Bill wake up and smell the piss, your products suck ass!!!!

[littleBIGfail]

making LBP levels to care about anything else anymore

[heyheyhey]

Microsoft don't make as much money as Nintendo in the gaming market... not even close

if they lost IT marketshare, that would be hugely detrimental... Microsoft can't survive on gaming alone, if they were to do that- they would have to lay off most of their staff and shrink their company significantly

while they still have a monopoly in IT.... people are starting to see the advantages of the alternatives.... Firefox is vastly superior to IE, who the hell uses MSN as a search engine? and freeware software negates the need to use any MS software like Word and Excel

Vista is a massive failure too.... if Windows 7 fails on a similar level... Microsoft could be in for some dark times

[theEnemy]

Bill Gates retiring is a smart move on his side I guess.

[SprayandPreycom]

theres a sony in trouble article then 2 hours later theres a microsoft in trouble how peachy when you really think about it were all in trouble. AHHHHHHHHHH

[Jdoki]

As Fishy said in the first post - it almost looked like a Bruce article taking a swing at MS!

MS has it's fingers in a lot of pies - that's not going to change. The MS we know now is going to evolve over the next few years - and possibly become a much smaller, leaner and more agile company.

But I'm not entirely sure I agree with Bruce that the entertainment division is going to be a huge part of their continued dominance or success.

The Zune isn't making any impact on the mp3 market.

The 360 has been a big black (red!?) hole for money since inception - and although I can see the long term strategy MS is working towards they have a lot less leverage in this area and I don't see a clear strategy for dominance beyong changing their 'A PC on every desktop' mantra to 'An Xbox in every living room'.

The most worrying thing for MS' entertainment division (in my opinion) is that even though they control the OS market, there's not a lot of synergy between Windows/PC's, Xbox, Zune and so on.

For example. I own both a 360 and PS3 - yet I use my PS3 for streaming media, not the 360. I have no 'fanboy' allegiance to either console, I just want to use the best tool for the job - and the PS3 provides that.

Why are MS not encouraging Zune owners to manage their music libraries on the 360 by providing a class leading music interface and store front on the 360? Why are they not launching accessories that encourage Zune users to dock their Zunes with a 360 to take advatage of the fact that many TV's/360's are hooked up to 5.1 sound systems?

MS need something to distinguish themselves from the competition and really make an impact on the living room, media centre space.

It would seem obvious that considering most people are using Windows, that the 360 would integrate best with this - but it's not the case at all. No one I know with a 360 uses it as a connected media centre device - and those people I know who own both consoles also use the PS3.

This generation MS have proved they can make a good games machine and 'steal' market share. Removing the 'gaming' side of both consoles what does the 360 offer that is better or unique compared to the PS3? That's where MS are losing out. The Next Xbox will need to address all those areas where they are lacking compared to the PS3 and compared to what consumers actually want.

The worrying thing is, by the time the Next Xbox launches (and assuming it adds a lot of value - like web browsing, bigger hard drive, access to 'cloud' computing, better PVR features and so on), Sony may have found they have gained a lot traction in this space because they are already offering many of the features MS is not.

[SlippyMadFrog]

Good post. I just want to ask a question though. What can the PS3 do that the Xbox360 can't regarding media streaming? I'm not debating, I realy want to know.

[Jdoki]

Absolutely nothing really in terms of features (and the 360 may possibly have better DivX support - although not sure these days).

I just find the PS3 far easier and quicker to use.

For example I use Nero. I fire up Nero Home and all my content appears in my PS3. I used to use Azureus for Bit Torrents, and it would immediately appear in my PS3. I took my PS3 round to a mates house (who wanted to compare a PS3 to a 360 as he intends to buy one or the other), and his media server just magically appeared in my PS3, but that didn't happen with the 360.

I'm not 100% sure about this, but the 360 seems happier linked to Media Centre. I found it difficult to get to work reliably and a bit hit and miss whether it would connect.

So it really came down... One is zero faff and hassle, the other is a little bit of a faff. Plus on PC I find Media Centre a little clunky to use... So I went with the easier option!! :)

[SlippyMadFrog]

Cool. Thanks for the feedback.

[DarkSniper]

Microsoft has not returned to their software dominance like they achieved in the 90's. With far more superior products in every category, Microsoft has clearly gone the way of the dinosaur. Xbox 360 is an endangered product as hardware failures shoot through the roof with each and every dying console every hour. Dark Sniper can truthfully state that when it comes to quality, Microsoft will never be synonymous with that word.

As this generation of technology moves forward, it's time to send Microsoft it's final goodbye as the consumers have made a choice to abolish all Microsoft products to move forward to much greener pastures (pun very much intended) with software and hardware that is reliable, easy to use, and functional.

From the heartfelt words of Dark Sniper, RIP Microsoft. Rest In Piss.

$niper

[Madbrain]

I always enjoy your comments!

[blackbeld]

Also Bubbles for you Sniper!! good comment

[PopEmUp]

a great comment sniper, You not mention anything related to SONY or PLAYSTATION 3 in the entire comment

[CrazyOrange]

i dont own any share in microsoft.
so i dont care if that dosnt effect xbox360 and i guss its WILL NOT and just fanboys bullshit talks

[timmyrulz]

To all those small minded juveniles who thinks MS been in trouble is a good thing need to wake up and smell their morning breaths, MS have hundreds and thousands of employees, contractors and subcontractors. Less money for MS means less money for all of these people, and that means less money for the people connected to them, so on and so forth

Love them or hate them, for the worlds economy its important that these giant corporations make money otherwise everyone loses out

[titntin]

It could be an interesting talking point, but instead of any in depth thought or analysis it degenerates into unproven assertions and the usual b*tching about the competition.

If MS were committed to being a long term player in the entertainment market, they would be concentrating on building and keeping first party studio's for the long run. They actually have enough money to be able to do this. But they have ditched most of their studio's and have no significant presence developing software now - with Blue Box and Rare being the obvious exceptions. I guess none of knows their ultimate long term 'plan', but ditching software dev houses the way they have in the last couple of years is NOT a prelude to seeking dominance in this market.

As for increasing market share - if you step back a bit, that doesn't appear to be the case. The 360, fine and succesful as it is, has only shifted as many units as the first xbox to date. Compare this with how much the market has grown (there are so many more people who now own game systems) and you can see that as a percentage of a much bigger market, their current market share is actually smaller. Of course sales are strong, partiularly after the recent price slashing, so the share continues to rise, but it can't be claimed to be a 'qunatum shift' in market share, unlike the WII which has stolen the show.

[Jdoki]

Personally, titntin, I think MS spinning off it's 1st party devs might be a good move.

MS appear to be making a clear dilineation between what they do (make the Xbox hardware), and what developers do (obviously, make the games).

In terms of costs which is cheaper...

- Owning a first party dev and paying all the associated costs (including delays etc)

Or

- Hiring the best developer to create the game they want (and bound by a contract for delivering it).

MS get to control expenditure (how much they are willing to pay for the game to be delivered) and negotiate terms for the delivery of the product - the developer is free to control their own costs and resources etc. If MS are putting in place a contract with a developer to produce the exact game they want it's no different from giving the design brief to a 1st party. Plus MS can control the IP's they own and alloacte them as they see fit.

A couple of examples...

Bungie. MS no longer have to pay for Bungie's upkeep. MS also own the Halo IP. MS can now negotiate with Bungie to develop the next Halo title. Let's say MS don't want development to start on the next Halo game for another 3 years - that's three years they don't have to pay for Bungie.

Epic. MS own the Gears IP, but employ Epic to develop the game (as they are obviously the best at what they do). I read that the original Gears cost about 10million USD to make. If MS can pay 10million-20million for each Gears game, that has to be cheaper than bank-rolling the entire company long term.

Rare. MS own Rare, but most of the talent from the golden N64 era is no longer there. MS have essentially paid for a name and few IP's (Nintendo retained some of the IP's when they sold their stake to MS). Rare's output has been fairly low since joining MS, and none of it has sold at mind blowing levels (or even been AAA really). Yet MS have to bank roll Rare every month.

[titntin]

Thanks for a well reasoned comment - not an every day occurrence on N4G anymore! :)

I have to disagree that its a good thing though. If you are a financial analyst, you would concede that it controls costs. But as a gamer, I'm much more interested in seeing inventive exclusives on the platform, and this method of working does not help to produce this.

As a counter example for how wasteful their approach is to trying to secure decent content, just look at the DLC for GTA and Tomb raider. Big waste of cash, which they could have used to support a first party team working on genuinely new ideas.

Either way, as long as I get great games I'm happy enough, but I still don't think their first party approach is indicative of a company in it for the long term. Only time will show though! :)

[Sergeant Osiris]

tells me M$ is bleeding like a stuck viet cong pig and it's time to move in for the kill.

[xaviertooth]

360 which is almost a freebie now is on a lifeline! next stop will be another pricedrop plus a free game.

so part of microsoft as a whole is in very very deep trouble!

[littleBIGfail]

about the gaming devision making a profit these days ... but soon all will end when no one does anything but build LBP levels forever and ever ...

[mirroredderorrim]

IMO, Vistas failure is everyone's gain, the competition.

I am wondering if Bruceongames was a man constructed from within the bowels of Fortess Von Microsoft.

Because you're spinning me right-round-baby!

[Magic_The_Celt]

I got no problem with Microsoft, just the division that does the 360

even though i own a 360, im not going to lie and not point out its obviously a crappy piece of hardware cheaply made.

[somekindofmike]

I personally belief what Microsoft need to do is start from scratch with Windows. What I don't mean is forget everything they've done already. What I mean build the new version of Windows from scratch incorporating things which work from older versions of windows (like Direct X & the user interface) but just start with a clean slate. No Copy and Pasting lines of code from old versions windows.

This would hopefully result in a version of windows which does all the things we are familiarly with, but is written with as few a lines of code as possible. hopefully resulting in few a problems as possible and also resulting in a less resource hungry OS.

(I am of course referring to the rummours that Windows Vista is just patched code from XP, XP patched code from ME, ME patched Code from 98, 98 patched code from 95)

I have heard rumours before that Microsoft have deals with hardware manufacturers to make each version of Windows more Resource hungry than the last forcing the Customer to purchase a new system each time they want to upgrade to a new OS. I take this with a pinch of salt, and think it is just lazy developing on MS behalf. but it does make you think when if I were to choose to upgrade from OS X Tiger to OS X Leopard on my Mac, I am meant to see a performance boast because Leopard has been coded to better make use of the hardware, because they have had "X" number of years to get use to the hardware inside the machine and know how to code for it better now then when they wrote the old OS (or something like that).

[DJ]

And Vista really is a huge hassle. There's constant glitches in the internal menu screens, I have to get administrator permission twice in a row just to save a picture file (even though i AM the administrator), and my programs will regularly crash for no reason. I do heavy 3D rendering, so you can imagine how horrific it is to watch a scene crash after completing only three frames of animation.

I want to go back to XP as soon as possible.

[jerethdagryphon]

vista was scratch built at least its network code and disk managment was
parts wee lifted from linux and te rest was illed in but to all intents and purposes it was scratch built

one of the reasons its so flawed

[MrEko]

I use my computer to surf the web...period..all this "Vista sucks" reallys doesnt apply to me. I run nothing- I do nothing. My Xbox and Playstation see a lot more time than my web browser...just sayin'

[Lets-Game]

you can compare hundai to bmw all day, by it being cheaper and selling more but bmw is still miles better.

[somekindofmike]

Fair play to you, I'm not trying to tell everyone that they need to not use windows, I'm just referring to my own personal experience. It all depends on what you use a PC for.

If you use a PC for...

Gaming - Windows is pretty much the main choice.
Surfing Web email etc - then it doesn't matter if you are using a machine still running windows 95, what ever works does the job,

I myself fall into the same category as DJ, I'm a designer who works within motion graphics a lot and have to do a lot a heavy rendering and processor heavy work. My choice of profession pretty much dictates I use a Mac, and it works for me. Referring to 'Lets-Game' of course you are right, but it doesn't mean that everyone needs a BMW. besides I'd much prefer an Austin Martin :)

[gumgum99]

Still singing that same old tune, eh Bruce?
"So it is against this background that the Xbox/Zune/Live project makes so much sense. The gaming industry is still at its very beginning. The future growth potential is very many times the current size of the market. So it will grow to be a far bigger market than the IT markets that Microsoft have monopolised for so long. In other words Microsoft could become a bigger company because they will be in a bigger marketplace, as long as they have a significant market share."

So the main point of this article is that MS may be doing badly in its other markets, but if they conquer the game industry than all is good, right?

That is what your saying, is it?

I'll belive it when I see it come 2012

[somekindofmike]

First off, anyone who thinks Microsoft is in deep trouble is deluded, this coming from a Mac User, and I don't own a 360, MS are not my favourite company, but I can see they are not in trouble, minor downturn? maybe, trouble? no.

Now onto the mine flaws which 'gumgum99' brought to my attention which I want to elaborate on.

Gaming industry is still very young?!?!?

presuming the writer is meaning compared to Microsoft other products.

According to Wikipedia the first computer/video games appeared in the 1950s, with home consoles first appearing in the 1970s
Again according to Wikipedia first Personal computers appeared in 1970s.

So in this case, video/computer games have been around longer, what about other areas microsoft focus on, MSN Search, Internet Explorer. Do I really need to point out that the internet didn't appear in the public domain until during the 1990s.

I think we can just about still call the internet 'young' but Video Games, I don't think so. we're heading onto 50 years of home consoles now.

This article isn't complete nonsense, but a complete lack of research and just randomly spouting out nonsense to back up his claims make it hard to take anything he's written seriously.

The day Microsoft give up on Windows / MSN Serach / Internet Explorer / Office to concentrate on gaming is not going to happen in the foreseeable future. Apple Macs are not going to over PC with the way Apple License it's OS (it could be very different if you could install OS X on any PC,) and Linux is currently only really in circulation between people in the know. it's not easy to get hold of a copy to install it if you don't have the technical know how. I think Microsoft won't be too worried.

[T3L3PROOF]

Its true vista broke on me twice i have no idea how, then i had to explain to the manager of Circuit City that this Vista isnt working out, so i asked him if he can order me a Windows XP, and I got it. Now i havent had problems with anything.

[artsaber]

It is unfortunate, I am certified in Vista. But Vista is a poor copy of MAC OSX Tiger (and up). It was an OS that failed EPIC-like in trying to be more than OSX. I am a PC guy and have several at home, but I also have a MAC. Everytime I fire up that MAC... it amazes me how it tends to outperform its PC counterparts that have significantly higher specs. My last gen MAC fires up websites just as fast with a lower wifi strength than my state-of-the-art Windows XP laptop (I refuse to use Vista as my OS). As we say in the IT business, I UPGRADED from Vista to XP! I am by no means a MAC-oholic, and to be honest I recently just stated using them on a regular basis. But the difference in the OS and system performance when compare to a PC with a Windows OS will make you scratch your head in "wonderment", because you will not be able to find a reason why or how PCs and Windows dominate the market as they do when such a superior product has been out for so long.

I suppose it is advertising and the idiocy of the average consumer that keeps MS afloat in all of this. As you can see MAC sales are starting to inflate after their string of clever(and funny but true) ads. the only reason I have been focused on PCs is because they keep me employed! If most companies used MACs I may not have a job because they run so much better and have not even a third of the technical issues. And that's real talk, but if Windows7 "duds" like Vista... MS will start getting questionable about their stronghold in the future software business.

[DFresh]

In a way that's kinda true.
Most of the music player market is owned by Apple w/ the iPod.
Practically all of the music production is owned by Sony.
Ninety Percent of the movie industry and 100% of the movie production industry is owned by Sony.
Sony had created DVD even now they still own a good 70% of all movies being produced on a disc and they own the new format Blu-ray.
Sony created CD, DVD, Blu-ray, Blu-ray CD, etc.
I'm glad to see Microsoft in a industry they're good at which is video games but even then that won't last forever since Sony is catching up real fast w/ the Playstation 3 and there's a price cut in 2009 so Sony might just overtake the 360.
The one spot I can stay Microsoft will be safe in are things like Microsoft Word, Excel, and Power Point because all computers have it even Apple uses Word and Excel.
So, we'll see what goes on in the future but the only thing going on for them entertainment wise right now is the Xbox 360 and some PC gaming.

[blackbeld]

DFress i agree with you..

Sony and PHILIPS creates the CD (compact disk) with the joint force success of cd they continue creating DVD (digital versatile disk) and BLU-RAY all are successfully formats.

BTW PHILIPS and SONY also create the BETAMAX video tape in the 80's but it failed against the VHS tape that was created by PANASONIC (MATSHISUTA corporation)

Why the disagree??? stupid 360 bots they should went back to school..

Bubbles for you too DFress good comment

[sak500]

SONY is in even bigger trouble.

[karlostomy]

It means Bruceongames is looking for hits on his blog.

You are a pathetic old loser marketeer, bruce.

Stop spongeing hits off the internet and
Please, please... oh please get a real job!!!

For Fvcks sake!

Bruce, you are lower than Nasim!

[xaviertooth]

For Fvcks sake!

karlostomy, you are lower than bruce!

[karlostomy]

Haven't you got anything original to say?
Must you copy everything I do?

You have reached rock bottom, haven't you?

[PS360PCROCKS]

As long as their are PC games people will always use Windows. What a dumb article, this shouldn't be posted as 360 news, it should be PC news, thanks fankids

[artsaber]

Great post. There are a handful of reasons why the 360 is not used as a media device. The main one is that the capabilty is not "wizard based". Someone kinda has to know what they are doing to setup the 360 that way, and then have the intent to do so. It is like you said, the PS3 is a much better device (ironically) to do this. As a matter of fact the PS3 hardware is about twice as good in quality as the 360... I own all consoles, and this is an evident fact.

Also, with the Zune... the software for the Zune is about the only thing worse than Millennium and Vista. It is absolutely HORRIBLE! You have to use registry hacks in order to see a Zune as a separate device in My Computer. The Zune FORCES users to interface with it through Zune software only. This could be the reasons why such an option is not available for Zune to 360 marriage. It is a shame because the Zune device itself is AWESOME. If the 360 were built like the Zune, I doubt that I would even own a PS3... but the PS3 hooked up to a 46" 1080p HDTV with surround sound is hard to beat in audio and video... the PS3 is just better equipped for the job (built in wifi helps too, twice the networking options in different rooms).

The Zune is an awesome device if you know how to hack it. My lady wanted to use the zune to study for her college courses. So I took her online flash card website, extracted the flash card data from the temporary internet files after she used the flash card website... copied it to a word document... extracted each indivdual flash card in word as an individual .jpeg, then I used a registry hack on the Zune to allow me to drag and drop the picture files into the device.
The hardest thing was organizing the file names in a way that the flash cards would come up in the proper order, I used a name changer to do that. The Zune is awesome when you creative find ways to remove the ball and shackle MS places on it. You SHOULD be able to use the Zune to study for college, she got the idea from me when I used my PSP to study flash cards for college, but the PSP is so easy, it is just drag and drop... you get my point. i only paid $79 for a new 30GB Zune, I wish I had bought two!

[eagle21]

LBP wipes the floor with 360's underdelivered game trash.

LBP > any game on RROD box. Bots continue to support TRASH and pretend to ignore SUPERIOR GAMES only on PS3.

botz: Go play 2 huMan, fLaBle, NalO, and gEErZ over again. You had nothing in 08' and crap in 09'. :)

[sak500]

Hahah if we 360 owners ignore your games than you ignore your games as well.

[ElementX]

Hey Brucie, just go away.

[God of Gaming]

I am really starting to hate the fact that this site considers personal blogs news.

[Bladestar]

ohh crap... Microsoft should close down... ohhhh they are in serious trouble! run!

ahaha! Do you guys have any idea how long since people have being predicting the destruction of Microsoft?

Do you know how many new Microsoft products came out after?

Do you know how easy it is for a company to make other revenue streams...

Take the xbox 360 for example, though it was not generating profits at first... look at it now... That's one more revenue stream with the potential to bring billion into a company that was not part of the equation 10 years ago.

People are panicking because other companies are making software that compete against some microsoft products like Internet Explorer, MSN, Windows, Office?

Well, guess what... over time some of these software will disappear as technology evolves... just like AOL software, and others.

I wouldn't doubt if Office as it exists completely disappear as technology moves to a more web service oriented app environment...

But that does not mean the Microsoft will be in trouble.. since 5-6 other products and revenue stream will come out of no where...

You see... people are shortsighted... it's not the ability of a company to make 1 good source of revenue... but the ability of a company to be able to come up with lots of revenue as technology make their existing products obsolete.

Do you actually think this is the first time a microsoft products dies out?

When a company put all their eggs in one basket and only sticks to one product they die... this is what happens to Netscape and others... and this is why many companies try finding other revenue streams...

take Google for example, you don't think they know their browser world will die eventually? This is why they are trying to get into other things like Phones, office software, etc. Because all it would take is for someone to come up with a better way to search the web and BAM! out of business.

[Anon1974]

Bladestar said "Take the xbox 360 for example, though it was not generating profits at first... look at it now... That's one more revenue stream with the potential to bring billion into a company that was not part of the equation 10 years ago."

Um. So the 360 causes MS games to lose 1.2 billion, then 1.8 billion, now it's making $400 million. So, in 6 years the 360 will break even. You think that's a good thing? I guess it's not losing them money anymore, and that's a good thing.

Don't get me wrong. I disagree with the article and I know MS will be just fine, but I am concerned about my 360 and what losing billions over two consoles will mean in the long run. I don't like MS's talk about creating a cheap, Wii like console that will be some sort of "digital distribution hub". The world has a Wii already. We don't need another one.

[artsaber]

Hmmm, that's funny. Last time I checked, there were a mass stream of people calling for the death of Sony as if someone who works there constantly rapes their mother. Sony, whether people like them or not is the most diversified company out of the Big 3. Just ask Netflix why certain movies aren't on XBOX Live, etc. Sony is responsible for so many integrations and technologies, that it is only out of sheer idiocy that a 360 user should even dislike or hate them. Sony is responsible for pioneering the gaming industry away from cartridges. It was the first console popular enough to change the standard away from the qtip-and-alcohol-while-blowing -the-thing-out types. Trust me, the XBOX and 360 both have optical drives in part due to Sony innovations. Not to mention that they helped develop the technology. Be careful 360 fanboys, to hate anything Sony is to hate a good percentage of technology that allows the 360 to even exist. Also be careful Sony fans, Microsoft has influenced much of the ideas behind GUI interaction, icons, etc. that makes stuff like a XMB possible.

It is not that certain software technologies are becoming obsolete within Microsoft, it is the fact that rival competing software is perceived as BETTER than Microsoft's software staple components to Windows. MSN is worthless, Firefox is better than IE (Even I resisted the change)... to be honest, IE6 is better than IE7 in some ways.

Also, MSOffice 2007 has made some improvements over Office2003, and is probably the last thing outside of a core of OS that has strong legs, due to its integration with Businesses and their usage of Microsoft Exchange. We have had the option to upgrade users to Office 2007 for over a year, and most folks don't want it. But the new look is radical in comparison to the old and it turns customers off, as they don't want their menus hidden behind one big master button. Even though you can switch to the classic look, most people are retards when it comes to anything beyond Out-of-the-box basic tweakage.

There has always been better products besides the ones that MS offers, but getting them noticed in a public eye was the problem. I believe Firefox's download traffic this year has posed the first credible threat to IE's dominance over the browser of choice. Thank God for MS it is packaged with Windows, if not... I guarantee you that IE would be used about as much as Opera, and Firefox might be dominating all browsing software at this point.

[Bladestar]

@darkride66 - lol! that's because you are shortsighted and probably understand very little about investment. Seriously I am not trying to make you feel bad, I just don't know how to say it nicer.

You see, it's expected for a company to lose(invest) money when introducing a new product.

That's the reason why Sony lost more money than what Microsoft lost with the original xbox and the xbox 360 put together in order to push Blu-ray and are still losing money on each PS3 sold. Why do you think they are doing that? Because they believe that if blu-ray investment works they can make that money 10 fold and have a established new fresh revenue stream.

What do you think? Do you think Microsoft will have a hard time selling Xbox 720?

That's not the only thing.. but the xbox brand gave microsoft the opportunity to open other revenue stream and revenues... Like deals with Netflix, Movie Marketplace, Zune, developers that will now buy Visual Studio to make games on the xbox 360...

I know for people like you it's difficult to see the immediate investment and see it as not worth it... but companies value Revenue streams more than Money... they rather lose 10 billion on something that can generate 20 later...

I mean there are talks about Microsoft wanting to buy Yahoo... for 20 Bil... I personally don't think that it's worth it... but who knows what other revenue stream that deal can buy...

I do not know how to put it in worst that you can understand but the bottom line is.... a company rather lose money on a product for 5 years and have the potential of having that product make money for the following 20.

@artsaber

"Just ask Netflix why certain movies aren't on XBOX Live" didn't you get the memo... Sony had to roll that back and now all Sony movies that weren't available on the xbox 360 now are.

aside from that I am not going to try to have an intelligent conversation with someone that thinks that Microsoft funeral is next week... that's being done since Microsoft was first released.

I get it.. you win.. Microsoft is an evil empire that no one wants... and their OS is obsolete.. and they can't do anything right... they do not innovate on any areas... Sony is the best company in the world and the PS3 is beating the $h!t of the xbox 360 in terms of sales and games... hell they are even beating the Wii... I got it.

microsoft also had no influence on any of the internet technology used to today like ajax... dude I know how to deal with your kind... all I have to do is ignore all the crap that comes out of your mouth that has no bases... Why would I try to talk to you about something you are not going to understand? You only know and see what others anti-microsoft single sided people tell you.

How about microsoft contribution like H.264/MPEG-4AVC?

How about in the XML arena?

How about when Microsoft pushed an implemented TCP/IP in their OS when Novel and other didn't want to?

how about C#, Generics, and other OOP standards that now are part of most languages?

And as I mentioned above... how about ajax who microsoft introduced 1999 as XMLHttpRequest just to be added later to Mozilla and Safari and finally On April 5, 2006 the World Wide Web Consortium (W3C) considered a standard.

noticed the name of the component back in 1999? "XML"... and all of the sudden... XML and ajax is the next big thing that companies like Google and others pushing... as if it's something new they invented...

you see kid... just because you DO NOT KNOW... and someone else that also know less than you do tell you something does not mean is true...

But I will say this... I do agree that Sony innovations and inventions benefit the world... and I wouldn't imagine a world where companies like Sony, Nintendo and Microsoft do not exist.

One of my HD TVs is Sony and I have Digital Camera that are Sony... and just because I do not agree with the direction Sony took with Blu-ray and the PS3 it does not mean I will undermine the hundreds of other contribution they made to us all.

Overall I think Sony is a great company... just do not like 2 blu-ray... and who knows maybe things workout and I am proven wrong... and later I become a blu-ray sony lover.

http://en.wikipedia.org/wik...

[Anon1974]

You seem confused between legitimate R&D costs and billions lost from unexpected warranty issues due to your own shortsighted mismanagement of quality control. I suppose that money was "invested." I suppose if I screwed up and had to spend billions to fix a problem I caused, my boss would say "Great! And you fixed your giant screw-up. That's money well invested!" Shareholders might see it differently.

I fully understand money needs to be spent on R&D costs, I also understand how important it is to price a product aggressively to build a user base as the money is made up later in software. That is why you don't see me being overly critical of Sony's startup costs associated with the PS3 vs the 360's 1.8 billion hit they took as a result of their "ship at any cost" rush to market. The fact that you would bring Sony up at all indicates to me fanboyish tendencies. Otherwise, why would you counter a legitimate point with "But LOOK OVER THERE! Oh, my god! Look what they're doing!" Distracting from the issue at hand doesn't change anything. We're talking about Microsoft here.

I also appreciate the costs involved in establishing a brand - but what you fail to factor in is that the money has to be there eventually in order for this to work. MS isn't planning on supporting the 360 for another 6 years before it breaks even, they're planning a replacement in 2-3 years. And you ask will people buy the Xbox 720 when it's due out in a couple of years? I know I won't. I was burned too badly with my 4 360 consoles. I'm not falling for that one again. I'm sure I'm not the only one. Also, in 2 years time MS will find itself in the exact same position the orig Xbox was in, competing against a firmly entrenched rival. We can assume that in 2 years time the PS3 will be cheaper and much more established. Will consumers be so quick to give MS another shot? Only time will tell.

So, how can I put this to you so that you can comprehend this fairly straight forward business concept? Spending money to make money only works if at some point you make money, preferably more than you spent. I hope that's simple enough for you without you claiming I suffer from "shortsightedness" and ignoring a completely valid issue facing MS and their shareholders. Certainly the analysts in the conference calls I've been part of discussing MS's financial reports haven't shied away from discussing the prospect of MS getting out of the console making business and focusing on software, an area where they have a traditionally stronger showing, while still capitalizing on their user base. Are those financial experts "shortsighted" for even talking about the issue 8 years in and billions later? A company's responsibility to their shareholders would dictate that a some point it has to pay off, otherwise they'll have some explaining to do. How long should shareholders wait, watching a company throw money down a well before they can expect to see some of that money back? 5 years? 10 years? 20?

I guess to you at doesn't matter, so long as revenue picks up somewhere down the road maybe...at some point...we swear it'll be soon. Let's give a silent prayer that it sounds like you don't make any major financial decisions for anyone.

Edit: Sorry about the length of this post.

[majorsuave]

this :"potential is very many times" is the win

[running rampid]

new title for your website: www.bruceonflames.com.

[labwarrior]

Think again, Windows is not beeing attacked, Windows has killed anything else on the market, and is now the only thing left

Maybe in 20-30 years some other OS manages to take their place, i can't see how, but maybe ... in 20-30 years though, and if some other huge company tries it, and are ready to waste billions in promotion doing it

What a joke, who on earth writes articles like that

[pshizle]

at microsoft

[smurfie4]

Ironically, I'm using firefox right now. lol. I still use IE but it has a tendency to lock up a lot.

[Moto13]

Heck, I am a developer on Microsoft products. What people need to understand is that Microsoft isn't just windows and office. Microsoft has so many enterprise products like SharePoint, SQL server, BizTalk...etc. It will always be a software company. The xbox business is a very good move because it will be a huge market indeed of which microsoft is doing great in and probably will continue to do so in the long run.

[na2ru1]

From a regular consumer's pov i.e. me, browsing music, pics, leisure, Vista has allowed me to reach certain files a lot quicker.

There's a lot more flexibility with shortcuts, thumbnail previews and search functions.

From a professional's pov, it may be a problem. Compatibilty?

[Ziriux]

Yea Nintendo is almost expected to beat both MS and Sony. Nintendo is a family friendly console. There is a lot of families out there that like spending time together and the Nintendo Wii is something that makes that a fun experience. I think MS and Sony also have a different audience their going after. MS after hardcore games and also tries it's best with casual gamers but it's not such an easy task.

Sony is all about the PS3 being a true entertainment system, not just for gaming but anything entertainment related. It's interesting to see how both manufacturers end up in a year or two.

[DiabloRising]

ROFLCOPTER.

Article is fail.

[jack who]

good

[Mindsucker]

I am just taking this from a comment I made on another post it just seems to fit hear also.
All you suckers that actually take this seriously really need to get some therapy. Man some of you people need to get off your happy little cloud and come back to reality. The more you read this crap the more money these companies make from it. So the more controversial they make it the more popular it is and the more $$ these tools make from selling out to a corrupt industry.

[-SIXAXIS-]

I used to use all of those just a year ago, but recently I bought a Mac so I use none except for MSN for IM.

[ActionBastard]

I think the suggestion that MS would, for some reason, shift it's entire business model to just gaming is...triggerhappy. Office generates more revenue for MS than Windows and their license pricing and strategic partnerships far outreach that of gaming. Regardless of popular opinion, Sony is a huge threat to MS in the gaming space. If Nintendo had made a console for gamers this gen I'd include them, but alas, it's a toy. A nice toy mind you, but still a toy. Anyway...MS biggest obstacle is lack of 1st titles. Look at how many titles Sony has banged out this year and what is slated for 09. MS has no answer to that. And as long as they don't the gap with Sony disappear.

[pshizle]

give me a break...same was said in 08

Microsoft will show some good titles in 09 to stay competitive.

[captainjy]

N4G is garbage. Boot me!

[Amplitude]

This kids, is why i just bought an iMac. And i love it to death...

Goodbye microsoft, hope i never see any of your products in my hand again.
I've never actually been happy with any microsoft product. I dont mind the 360... i am, however, on my third one. Yes, its an elite.
Once it breaks, its going in the trash. im not even gonna get the warranty on it... i've bought a PS3 and a Mac, i see no reason to keep buying games for that thing. Especially with its compressed audio... i cant stand the audio on it.
Anyway, yes- Microsoft is rather screwed at the moment. The reason Vista failed is because nobody wanted a new OS. Thus, no drivers were developed. Do they really think developing ANOTHER OS is going to fix that? Seriously? The only thing anybody liked about vista was the look of it - which i personally hated. ...which is why i skinned it when i had it.

Again, i love my mac. I even have Windows XP on it so i can play all windows games i feel like playing. Any programs i want to run - whether it be for mac or windows - can be run on the mac using parallels. I really see no reason to own a PC...
I also have linux on my PS3. I cant figure out how to use it though, so it pretty much never gets touched. haha. Call me an idiot if you want. Im sure i could figure it out if i wanted, i dont really care though. Herdy Heron? whaa?

So yup. Goodbye Microsoft. I enjoy watching your users switch to better products.

[Amplitude]

I understand your argument, but if they keep shoving their recent crap out there, people are going to become like me and not buy anymore of their - yes - "crap".
If people don't buy this "crap", where are they going to get their money for all the XML and whatever else you listed above? Do i know, care, or understand what all that is? no. Does that matter? no. Because i'm an average consumer. I buy what's best. What's best? well, my mac, ps3, and iPod are best. I don't, and didn't support the Zune, or HD-DVD (What idiot would?), and i was forced to use Vista due to my XP computer crashing. Call me shortsighted if you want, i don't quite give a ****. I just know i will never buy another Microsoft product again, and thats less money for them to throw out their crappy products. Thanks.

[KrimsonKody]

...but everyone said that I was a "PSfanboy" and "MS hater"...
( sighs, while listening to 'she knows' by Gnarls Barkley: nice song and very befitting)

[bneals]

I think that it is pretty clear that this guy doesn't like MS. He is not alone. Lots of people don't like the company either. That said, facts still matter, at least they should in an intelligent discussion.

A quick check on the facts of the health of MS reveals that profits are actually up, not down. According to the NY Times on October 28, 2008, "Microsoft’s revenue in its first quarter, ended Sept. 30 (2008), rose 9 percent to nearly $15.1 billion from $13.8 billion a year ago." In fairness, that same article says that profits will like be down next year because of a hard economy and businesses failing to upgrade to Vista the way MS thought they would.

As for browsers, Computerworld reported today that the share of IE as a browser slipped below 70% for the first time in years. A pessimist would say that MS is dying off. An optimist would point out that MS continues to have a whopping 70% of the market.

I don't point out these things to go pro-MS. I just don't want this guy's slanted opinion to overlook facts.

As such, MS isn't going anywhere. Continue to embrace facts.

[MNicholas]

Dramatic title aside, the one company that can buy itself out of any situation is Microsoft. They have oodles of cash!

Microsoft already has a strategy for taking on Google and they are doing it from a position of strength. Media hype aside, google has a long way to go to supplant Microsoft as the dominant player.

[Lykon]

I don't bother with any of that buggy MS crap

[SixAmpFuze]

Ms isnt in any trouble . They have like 70% of the browser market, they have Ms office which googles free crap cant touch. Windoes will always sell.

[cactuschef]

Whats with all these stories implying that Xbox/Ps3 are in trouble? First with HipHop gamer with his show titled, 2009 : Last Chance For Sony?, now its Microsoft in deep trouble.

I was under the impression that Xbox and PS3 are both doing quite well. Will all these pessimistic articles I would assumes that Nintendo will be the only ones left.