John Dvorak writes: Everyone knew the day would come when the fortunes of Microsoft Corp. would reverse. The company might now be in actual decline.
"Let me restate it. Microsoft is a software company. It has been distracted too easily by the success of others in essentially unrelated fields. Here are but a few examples (and there are dozens more): * Years ago in the pre-Internet era, AOL was the talk of the town, so Microsoft had to copy it with MSN. No money was made; no strategic advantage was gained. * Netscape was the rage for a while, so Microsoft threw together a browser and got in that business. The browser was given away for free. No money was made; the strategy got the company in trouble with government trustbusters. * During the early days of the Internet, new online publications appeared. Microsoft decided to become a publisher too, rolling out a slew of online properties including a computer magazine and a women's magazine. They were all folded. * Computer books became popular; Microsoft began Microsoft Press. After an early splash and success, the company soon lost interest and the division now languishes. * Oh this is not going to end well. This goes beyond competition by adding good features. This is just a clear lack of focused direction. Did this guy really go over Teddy Ruxpin too?
Well, I guess if you think about it pretty much every company does go through a crisis eventually but I just don't see the problem here. We're in a major economic mess and many, many companies both smaller and of a similar soze to MS have been in real trouble and recovered OK so prtending doom for MS seems very premature, if not completely groundless right now. So, yeah, it could happen but I can't see why it would in the near future.
Yeah, I guess it's time for the "MS is doomed" articles for a brief switch. Carry on, N4G...
however there are just enough haters around to prey on anything they can.
Yes he did but of course didn't bother with what could be considered their successes. Xbox Xbox Live SQL Exchange Visual development tools I can name other companies that have many failed attempts at new tech/ideas. MS has many failures but the party is far from over. Bing is catching on, Google is getting the DoJ/EU treatment now(they are on to the next big wallet), Windows 7 has plenty of good buzz and it looks like it's living up to it and Xbox has been gaining in market share.
What does this have to do with gaming? I understand that Microsoft makes consoles and software for gaming, but this article isn't related to either of these. This seems like a desperate attempt to drag names through the mud, and start a flamewar. Also, this is pure speculation.
It's about share prices and MS used to be $30+ at the start of the year now it's less than $15 a share. lose value in shares people don't buy your shares no one owning shares means you lose base money to work with. For the last 20 years MS has been spending moiney on usless stuff like wasting billions to sell the Xbox that failed then billions more to sell the 360 whether it's a fail or not who knows. Share holders though are getting fed up with the money wasting and some want the current CEO gone, change of CEO would probably mean a direct change in products etc. For example if the entertainment div really isn;t making then it gets shut down so anything in that Div won't exist. Does MS really need to be selling consoles and ipod rip offs no I don't think so when their base income is really OS and Office software so share holders will be looking at that stuff as a waste of money as it's not increasing the share price but killing it.
As much as I love SNE; we're all in trouble if the "party" is really over for MS. Think about it.
Why? If the party is over for MS, another OS/software company will take its place. Several, as it should have been in the first place. Trouble is, if MS is indeed going down, as a company that already can't play on a level playing field, its going to go down kicking and screaming.
We're all doomed. Only Nintendo and their casual games will survive! :( 2012 can't come fast enough. ^_~
There is a long list of things gone bad, but then there is a long list of things gone right (albeit shorter). I still prefer a company that tries and then suceeds at a few things as opposed to a company that doesn't at all. Seeing how MS is so full of cash they are giving a dividend, what else are they going to do with the money, but try new business models? If you read about MS, you will find out that IE didn't come about just to get into the latest hot thing, but to secure Windows.
The party is over for everyone! The End of Days is Near!
how did you come up with SQL being Microsoft's success ?? "During the 1970s, a group at IBM San Jose Research Laboratory developed the System R relational database management system. Donald D. Chamberlin and Raymond F. Boyce of IBM subsequently created the Structured English Query Language (SEQUEL or SEQL) to manage data stored in System R. The acronym SEQUEL was later changed to SQL because "SEQUEL" was a trademark of the UK-based Hawker Siddeley aircraft company" -Wiki
Where are you getting your stock information from? Microsoft stock peaked at 36.81 in October of '07. http://moneycentral.msn.com... In January of this year they were closing at 19.52. After the release of their financials their stock dipped to 23.45 from their '09 high of 24.29 which was established 1 week earlier. The stock market is still off by about 30% from the drop experienced in the last 18 months. Microsoft stock is inline with this drop like most companies. This isn't a knock at Sony, but to give you an idea how Microsofts closest competitor in the gaming market has done, they closed at 55.00 in Dec. '07 and are sitting at 25.45 today. They have underperformed by losing over half their value while the market is closer to that 30% drop. http://moneycentral.msn.com... This is over simplified and more factors go into stock value than you would think. To say Microsoft is on a decline in todays economy is just silly since all companies are down. If the economy was at a high today and Microsoft stock was declining, then this article might have some sort of point. To write this piece today is simply ignorant since Microsoft isn't the exception to the norm. -Death
Im sorry to tell that MS's stock price never dropped to $15 a share it at $23 right now. And while MS profit are declining they still earned 13.1 billion dollars last quarter. Share holders are not getting fed up with what MS is doing, where did you pull that out of. Also MS entertainment Div has actually been making money. Even though their profits are decreasing, a large number of companies are having that problem, MS is still making money and alot of it.
What Dvorak seems to miss... on a consistent basis... is he under-rates the intelligence in a given enterprise. It makes for "good" press. I know it's popular to paint Microsoft as an know-nothing dinosaur... but I would challenge you to do some of the feats they have accomplished. Who is to say Microsoft, a corporation with shareholders, doesn't look at the revenues of their cash cows and decides, "Hey, lets go make some new cash cows." When their original cash cows dry up, we have no idea what they will do next. But to imply they would throw their hands up in panic and helplessness... way to miss the point of business. We should be thankful that Microsoft has tried out so many directions. We are NOT shareholders. We are the customers, and we should be happy with this kind of experimentation. It would be NICE if some of those projects stuck with more reliablity, but wouldn't that make a bigger Microsoft? And to take the earlier explored thought to completion, I'm sure the shareholders would have appreciated the cash more than the failed experimentation... but that's the risk you run. Furthermore, these gloom-and-doom articles for MS are good, but when someone lambastes Sony's management, it's just another flamebait article?
Since I can't comment in the gamer zone. This article is going to get slammed by retarded fanboys arguing back and forth to no avail.
sony has parts of its company that are profitable. and their games division is one of them
"sony has parts of its company that are profitable." Microsoft is a far more profitable company.
I knew it....cant we leave Sony out of this one? They aren't even mentioned in the article. Funny though, a couple of my mutual funds recently dropped Microsoft. Some seem to think that they wont be posting profit consistently in the future. They were pretty stable for a long time....then gates left and we all know how business changes. Look at Disney for another example. Sometimes it really is the people behind the Driver's seat.
indeed, my friend, Sony never safes from being mentioned on any article.
Yes, it is shiatbots. Suck on that. The author of the article forgot to mention the XBOX 360, another "brilliant" adventure for MS. Dont forget that they are still 9 billion in red ink and that they will never earn that money back. So essentially thats cash flushed down the drain. Brilliant move.
This is 'Top 3' News now??? Are the Mod's on Holiday??? ;-D If Micro$oft did do a Party it would be the MOST BORING Party in the World!!! ;-D
Microsoft has been in worst whit xbox 1 but they didn't give up from games/consoles.
... you didn't try to make sense did you? O.o
Ah you might want to re think that... MS only got started in the 70's so it's only 30-40 years old Sony got started in 1910 1920 maybe before that, so it's been around almost 100 years.
He's gotta be right though about Microosft.
The problem is the future of the company is bright, Xbox Live alone is set to bring in a billion dollars of revenue annually by 2012, the Xbox division is turning a profit and all loss should be made back, Zune and Zune store is slowly growing (probably not a iPod killer but a huge contender in the field), and early press on Windows 7 is really positive.
Zune is doing well? I must admit i am yet to even see one in a shop anywhere, and i know noone that owns one. I must be the exception
MS is the GM of tech land. And GM went from being the biggest automaker to bankrupt. By any measure the Zune is a complete failure. How many billions did Microsoft sink on the Xbox division before it finally turned a profit? MS makes products that never really work right. Wow what a solid foundation for the company. The article points out the obvious. MS has weak foundations.
@Elven - That just sounds like made up BS. I own a Zune, I had to import it to UK, because MS is to stupid to sell the product over here, and it's great. BUT Zune isn't meant to have made any profit since it was released, hopefully things turn around for them with Zune HD, but iPod is too huge of a competitor for them to even make a dent.
Zune is about to kill my iPod. I have a 5th gen video iPod, and it's showing quite a bit of age. Once the Zune HD hits the market, that sucker is mine. I have a phone that works just fine and all I need is a better music player. Zune HD's radio tipped the scales from iPod to Zune for me. Plus, that $15 all you can eat music deal is quite enticing.
He's got a point though...but its up to the big dogs and all their decisions.
haha, I use to have a Teddy Ruxpin. Someone gave it to me as a gift, of course. ;) Their party isn't over yet though. As long as they have windows there will always be another party.
Is it me or is there an overabundance of Microsoft news today????
It's because of the posted loss. Blood in the water. Etc.
M$ got a bad fourtune in its coockie didnt it
So how is $ony doing?
^ Sony uses dollars now? If anything you should make the "Y" into a Yen symbol
I just wish there was a doom of 'doomed' articles if that makes any sense
heck no, after party!
just another venture that isnt proving to be profitable either
This is the first MS doom article i have seen. Interesting read. I didn't know MS tried this much to dominate other bussiness without much success. I think the problem is MS is mostly a software based company. They should stick mostly to stoftware based business.
Meh meh and meh Seen Windows 7 will be bought massive again after no one wanted Vista really, MS has its cash cow ready already again. In other markets upcoming, they beat Sony in the real console race and outselling them. Making money on XBOX, while Sony only taking losses. So? EDIT @ the guy below, could you give the links to those salesnumbers you're spitting out there? The PS3 gets outsold by the 360 since around Fall 2008 and you're making up some numbers there dude....
This is more about share price and it's dropping... really this isn't a gaming news site item so why it's here I don't know. Win7 is ok, but it's quickly becoming another Vista which is a shame as the beta was really great but the RC1 isn't as great. Sony sold 480,000 console units in June higher than any other company. I don't think they are overly fussed about MS only selling 164,000 units for June. remember this is business not 1 item product lines.
huh? Win 7 is just ok ?
has forgotten Nintendo and so what his comment really means is that Microsoft was the only company Sony despite being the only one with 3 pieces of hardware on the market.
As long as MS doesnt charge for service packs, they cant be as bad as for example, apple...... Why does everybody love apple anyway, they overcharge their products, and they ask money for service packs.... Only apple product i own is an iphone, and i intend to keep it that way.
"Only apple product i own is an iphone, and i intend to keep it that way." Agreed.
@Pizzagaki... I use a Mac and Apple doesn't charge for Service packs... I mean, they have these numbers like 10.4, 10.5... All of them are equivalent to new OSes... For example, the current one (10.5) was a huge jump over 10.4... A price for that is justifiable, but the Service pack equivalent are regarded as 10.5.1/2/3... Apple keeps on updating the last digit with new features= Service packs for which it doesn't charge. Also, Apple charges less if the OS update is small... For example, 10.6 (Snow leopard) will cost only 29$ for an upgrade.... Thats cheaper than the Win7 Home edition... The only reason people love Apple is cause of the image people have of M$... M$ has always been tagged as 'EVIL'.. I don't blame people since M$ did many evil things in the past... Like they f*cked up Netscape so bad that they had to shut down (they copied their web browser), they copied Apple and f*cked them up early in Apples infancy... etc etc. Apple on the other hand was always perceived to be the 'Chosen One' which it never became earlier.. And people blamed M$ for that.. And then Apple suddenly comes up with iPod and again hits the peoples Soft spot.... Hate Apple all you want, but their products are really great. Yes I agree they are over priced(especially Macs), but hey I bought them over Vaios and absolutely love the Apple OS more than Win.... I even use Win for gaming. Apple in peoples eyes is like the rise of the fallen hero... Who can blame them... The iPhone is a device which still has been unrivaled...
Cant wait for Zune hd . Emergence day .....
and me, I hope they release it in the UK this time.
Party over for MS? ....LMAO.... The U.S. is in a recession and a lot of major company's are hurting. But I bet as soon as Windows7 comes out MS will be right back on top. Also let not forget Bing is actually getting a lot of traffic these days. All in all I would say the party is far from over for MS.
Well, sadly its human nature to hate the sitting order, even if its good for them. Its one of the things i consider to be mysterious in humanity, and also proofs that humanity lacks a good sense of logic. For some reason they just want to hate something thats big..... The MS is doomed articles are getting tiresome, just like the USA is doomed articles i read in the left winged papers everyday in my country.
Bing is crap, it's pretty much the same as Google, except i can never remember it's name.
I can't even think of which company would be the first to go down(gaming division). Sony is such a big company and they have seen that they can dominate just as well or better than Nintendo. MS is starting to rise to the top, and Nintendo basically has a money machine on its hands with the Wii.
To have successes you must understand the fact that there will be as many, if not more, failures. If the successes outweigh the failures, the company profits. If the company fails to make risks and stays in its comfort zone it never grows. Microsoft posted a smaller PROFIT, not even a loss, and somehow it's dying? So what, it's having a bit of a dry streak in a global recession, plenty of companies are having trouble. Get over it.
I 2nd that %100 agreement.
He wasn't actaully saying that MS is doom as i thought. Rather he is saying that MS is currently on the wrong path. Its his opinion that MS is trying to be a Media company rather than a Software company which is what put them there in the first place.
I love how the article ignores the game division at MS.
From the article: "I could go on with home-automation initiatives, phone operating systems, pen computers (two shots at that market), page-layout programs, Web-design tools and on and on -- all shiny objects for a company that doesn't want to actually fill a need, but jump from one idea to the next." Basically the "catch-22" quote, meaning that he could've gone on WITH the game division, but didn't because his point was made from the other things he mentioned. So he wrote THAT line to say that we could REPLACE the things he mentioned WITH the games division (which isn't doing too good for MS at the moment, either).
I'm glad I have a science degree. Seriously. Not one of these "experts" knew it was coming or what to do about it. Microsoft may be in trouble, it may not be but I can't believe "the party is over". Let's face it. When all things are considered this article is just more speculation.
This is what Sony fanboys need to hear, dont worry it will come true! Soon Microsoft will be finish and there will only be Playstation again!!! Just wait it ouy guys! Only a matter of time! No more PS3rd place soon, just pray real long and hard! ;)
We all want MS to go belly so that thousands of people lose their job as well as hundreds of companies closing as a result. Yeah we do want the ecconomy to get worse. You are so smart!!.
MS's Xbox division is going down that's how IT SHOULD be. 360 is the next dreamcast.
Ridiculous comment of the day .
Because the 360 is not the next dreamcast. 360 is the next neo geo.