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Is the party over for Microsoft?

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.

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Greywulf3829d ago (Edited 3829d ago )

"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?

mastiffchild3829d ago

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.

Tony P3829d ago

Yeah, I guess it's time for the "MS is doomed" articles for a brief switch.

Carry on, N4G...

mint royale3829d ago

however there are just enough haters around to prey on anything they can.

GiantEnemyCrab3829d ago

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.

DMason3829d ago

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.

zag3829d ago

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.

Maddens Raiders3829d ago (Edited 3829d ago )

As much as I love SNE; we're all in trouble if the "party" is really over for MS. Think about it.

Godmars2903829d ago

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.

rockleex3829d ago (Edited 3829d ago )

We're all doomed.

Only Nintendo and their casual games will survive! :(

2012 can't come fast enough. ^_~

IdleLeeSiuLung3829d ago (Edited 3829d ago )

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.

II Necroplasm II3828d ago

The party is over for everyone!

The End of Days is Near!

Ridrick3828d ago

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.[6] The acronym SEQUEL was later changed to SQL because "SEQUEL" was a trademark of the UK-based Hawker Siddeley aircraft company"
-Wiki

Death3828d ago (Edited 3828d ago )

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

markbob3828d ago

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.

edgeofblade3828d ago (Edited 3828d ago )

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?

+ Show (12) more repliesLast reply 3828d ago
jmare3829d ago (Edited 3829d ago )

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.

keysy4203829d ago

sony has parts of its company that are profitable. and their games division is one of them

-MD-3829d ago

"sony has parts of its company that are profitable."

Microsoft is a far more profitable company.

evilmonkey5013829d ago

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.

Etseix3829d ago

indeed, my friend, Sony never safes from being mentioned on any article.

El Botto3828d ago (Edited 3828d ago )

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.

Sir Ken_Kutaragi3828d ago (Edited 3828d ago )

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

+ Show (3) more repliesLast reply 3828d ago
DoctorXpro3829d ago

Microsoft has been in worst whit xbox 1 but they didn't give up from games/consoles.

Chubear3829d ago

... you didn't try to make sense did you? O.o

zag3829d ago

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.

II Necroplasm II3828d ago

He's gotta be right though about Microosft.

Elven63829d ago

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.

Carl14123829d ago

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

blahblah1233829d ago

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.

gaffyh3828d ago

@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.

edgeofblade3828d ago

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.

+ Show (1) more replyLast reply 3828d ago