560°

Microsoft facing an uncertain future

However, if growth is so much a part of the company's DNA, what happens when it disappears?

Users of the Mini-Microsoft blog (http://bit.ly/bjmicrosoft1) - a site run by an anonymous Microsoft manager that has become a chatboard for employees to discuss the company without divulging their identity - generally agreed that it was seriously bad news.

"I'm glad I got laid off in January," said one user. "I see clearly now that Microsoft has truly jumped the shark and is a company in a long, slow decline."

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taipeitimes.com
Xwow20085802d ago

Work soldier, our tactics are destroying MS.
the day MS decided 2 face sony its the day when they dig their own hole.
:PPP

El Botto5802d ago

Sony is not MSs only competitor.

In fact, MS is facing a huge number of competitors from Samsung, Google, Apple, Sony, Toshiba and more.

MS is losing in every area. And Windows 7 will not help MS anymore because Google OS is coming.

ShabzS5802d ago (Edited 5802d ago )

like the article says their size could be their biggest strength ... they had 60 Biliion $ in revenue this year which is a decline from the previous year for the first time in 34 yrs ... and balmer is right .... they have windows 7, the new office tools and with bing and the new yahoo buyout ... they are expanding like crazy...

KingKionic 5802d ago

Yup.

Windows 7 will be great .

Personally im looking forward to the zune hd .

^___^

jessehaysfl5802d ago

vista:sigma?

We shall see....

gaffyh5802d ago

MS will be fine, but it is worrying that they are spending so much on acquisitions at such a volatile time. Windows 7 will be successful as far as all the first impressions are saying.

MEsoJD5802d ago

Windows 7(is just pure awesome) and Zune HD(looks awesome)

I don't like the 360 that much but that doesn't make me hate the company as a whole.

They still do some things right.

D4RkNIKON5802d ago

Yeah MS will be fine, they will still sling money around like they do. They buy companies like Yahoo! and 3DV (Natal). When MS runs out of money and can no longer buy innovation or buy the competition outright then they are doomed.

IdleLeeSiuLung5802d ago (Edited 5802d ago )

Now is among the best time to buy companies. Why? It is simple, because economy is not doing so well so the books don't look as good among other things reducing it's value proposition to potential buyers.

This is the smartest a company can do right now is to buy their own stock (assuming it is a good deal) and buy other companies if you can afford it without risking your own company. MS is so full of cash it is still giving dividends to shareholders.

Dividends in my opinion is among the worst payback to shareholders, because it is taxed and limits the company's ability to invest into new businesses.

darthv725802d ago

They are certain to have good days and bad days. They are certain to sell more 360's and games. They are certain to invest more time and $$ into their venture of digital distribution. They are certain to hire and fire as they see fit.

Certainly there is more to be certain about.

umair_s515802d ago

Funy thing: 'Microsoft had been planning for the downturn, said Warren Wilson, a senior analyst with Ovum.'

Ovum!? lol. Well its actually a telecoms and software Consultant.

Omegasyde5802d ago

I think Microsoft is exanding too much in such a short time, I also believe Google will make the same mistake.

Balmer is taking too many risks, and seriosly why lay off people when your company is still making profits and its debt-asset ratio is still in the black??

Narutone665802d ago

is not safe from going bankrupt. Mismanagement and bad decisions led Enron to it's downfall.

+ Show (9) more repliesLast reply 5802d ago
jessehaysfl5802d ago

wow so disgruntled employees think thier former employer will fail.

Sounds like sour grapes.

Granted I would love it if M$ failed but this is just nonsense.

NEWSFLASH: SONY and MS aren't going anywhere. No matter what happens in one hundred years from now if humans still exists so will MS and Sony.

Captain Tuttle5802d ago

Ma Bell, US Steel, AOL. I agree that MS isn't going anywhere for awhile but I doubt they'll be around in 100 years.

KRUSSIDULL5802d ago

My uncle got laid off. He doesnt hate them he likes them he would like to work for them again + they offered him work in the US but well they didnt want to move to the US and A but stay here in Sweden. Its to bad hes not working at microsoft anymore tough becuse I got my xbox 360 + over like 30 games from them.

jessehaysfl5802d ago

I hear you tuttle the only difference is those companies had nowhere near the capital sony and MS do.

However I was really just shooting for a ballpark so point well taken.

dcbronco5802d ago

You didn't see the last quarterly from Sony did you? Or any in the last couple of years. Sony doesn't have a lot of money. They are not like Microsoft. Microsoft has billions laying around. And while Sony has billions on hand, they owe 3 times what they have.

But getting to the main article, this is just another in the drive down the stock price game. For the last week or so, articles have been released to drive the stock price down so that "analyst"(read:crook s) can have their family, friends and congressmen buy it cheap. Once Windows 7, Zune HD and the Yahoo deal payoff they push it again and the stock goes up at which point the people they know sell. Don't make them more rich than they already are. Let them live off of their bailout bonus money. Stay away from the stock market.

Omegasyde5802d ago (Edited 5802d ago )

If Microsoft has billions to use, then why did they lay off "thousands"?

You never know, Microsoft could be like Enron and use smoke and mirrors as accounting practices. Not saying its true, but it a company is still making profits yet it eliminating people, something has got to be up.

I am sort of pissed that US companies are randomly laying off despite the company still making suitable profits.

The Lazy One5802d ago

cuz we're in a recession.

what kind of dumb question is that...

Omegasyde5802d ago

O so its a recession so everyone needs to lay off? I'll put it simple for you since you do not understand.

MICROSOFT is STILL MAKING $$MONEY$$. MICROSOFT IS NOT LOSING $$MONEY$$, JUST NOT MAKING AS MUCH $$MONEY$$.

MICROSOFT MAKE $$MONEY$$ = ADULTS LOSE JOB ANYWAYS? THE COW SAYS *MOO*.

jessehaysfl5801d ago

bronco I have....

Sony is losing profit not capital.

+ Show (5) more repliesLast reply 5801d ago
ShabzS5802d ago (Edited 5802d ago )

hmm ... or they could be just pissed of ex employees looking to vent out

Kushan5802d ago

"The announcement marked the first time in its 34 years Microsoft had seen its business shrink from one year to the next."

Yeah, the first and ONLY time this has happened in 34 years, during a bloody recession, and people are claiming that the company is doomed and destined for failure? Uhh, if this happens 2 or 3 years in a row, particularly during a recovering economy, start asking questions why.
But lets face it, one of their biggest money makers is Windows, but the last few years Vista has been getting an absolute hammering from people (sometimes legitimately, often not, but it still all adds up) however they're on the verge of Launching Windows 7 which has, aside from the odd naysayer, had almost universal critical acclaim. It doesn't matter what you personally think about either OS, the general consensus will rule the day and that consensus is telling us that 7 is going to fly off the shelves.

Doomed indeed.

MovieScouse0075802d ago

I agree with everything you say apart from your assessment of Vista.
Vista is truly awful, there is virtually nothing on it that works as well as XP.
It's slow, a memory hogger, a resource hogger, DirectX 10 is rubbish and there are hardly any drivers that work with it!
Vista is rubbish! I will reserve judgement on Windows 7 until I've seen it in action.
But you're right about Micro$oft's profits only being affected by the recession. Panic and overstatement are the predilections of the children that make up the vast majority of visitors to this site!

Kushan5802d ago

See the problem is, when vista launched it WAS a mess. But that was (literally) years ago and quite a lot has changed since then. For example, Drivers are not really an issue these days, unless you have particularly old hardware from a particularly poor manufacturer. And in actual fact, a very little known fact, Vista can actually use XP-based drivers. Yes, it's true, you don't necessarily NEED a "vista" based driver for Vista, although it will be a lot better if you had one.
7 is very similar to Vista, in that not that much code has changed between the two, especially compared to what changed between XP and Vista, but as I'm sure you've noticed, the press have been lapping it up and singing its praises. 7 isn't a huge leap forward from where Vista is today, I bet if you tried 7 you'd probably really like it, but then if you tried Vista (With SP2), you'd probably find that the experience was much different to your previous experience.
Either way, Vista's successes and failures don't really matter, we all know that 7 is going to be big big big, even if you hate windows and think 7 is rubbish, it's very difficult to deny that fact.

N4g_null5802d ago

Kushan is right... I reinstalled vista 64 ultimate so my brother could use my PC because I'm going out of town really soonish. Well any way during the reinstall and the march up to service pack 2 I had blue screens and every thing LOL. Yet once service pack 2 was installed it worked like a charm. I have a lot of stuff hooked up to this PC now and all of my brother sound equipment. Lots of it is old yet still top notch.

I had a feeling window 7 would rock. What is sad is how the PC manufactures contributed to the whole vista problem by using old stuff. I built my own PCs and I never really had a problem till I hooked up some really old and expensive sound gear to my box.

I've been running solid since the thing came out. Another thing is you might want to stay away from the pirated version simply because certain things are taken out. Hey I'm sure some people will say other wise.

Does it really make sense to get software that controls your security from a pirate? Any way I'll be getting window7 when I get back I think I'll upgrade when I get back.

If you got any thing below ultimate then you are playing Russian roulette

Show all comments (96)
120°

Playdead co-founder slammed with lawsuit as bitter row with co-founder escalates

Playdead co-founder Dino Patti is allegedly being sued by his former studio and business partner.
Patti was threatened with a lawsuit earlier this year after he posted a now-deleted LinkedIn post that shared an "unauthorized" picture of co-founder Arnt Jensen and discussed some of Limbo's development. Patti said Jensen demanded a little over $73,000 in "suitable compensation and reimbursement," adding that he had "repeatedly" had such letters over the last nine years.

Read Full Story >>
gamesindustry.biz
80°

Josh Sawyer: "I feel good about the ability for people to create games."

Game Pressure met with the one and only Josh Sawyer at Digital Dragons and chatted about RPGs, Pentiment, Pillars of Eternity, the state of the industry, and the genre.

Read Full Story >>
gamepressure.com
290°

The Real Enemy of Gaming Isn’t DEI. It’s the CEO

From Horse Armor to Mass Layoffs: The Price of Greed in Gaming. Inside the decades-long war on game workers and the players who defend them.

Read Full Story >>
rushdownradio.net
jambola12d ago

maybe a real enemy is people who use terms like "the real enemy"
there can be more than 1 bad thing, t's not like a kids show with 1 big bad

senorfartcushion11d ago

This is very much a “dummy who volunteers themselves to the middle” comment.

The real enemy is a common phrase, people use it all the time.

Calm down.

jambola11d ago

i'm very calm
you seem very upset however

Notellin10d ago

You don't seem calm at all. Don't take this so seriously, you seem desperate responding to others defending your opinion that lacks any value or critical thought.

jambola10d ago

stop projecting
i'm not desperately dong anything, i'm tapping at keys on my keyboard bud

PapaBop10d ago

It's not like kids show with one bad guy? I present to you.. Bobby Kotick

ABizzel110d ago (Edited 10d ago )

DEI was never the problem and it was an ignorant take to begin with.

DEI is why games like Kena Bridge of Spirits, South of Midnight, and Ghost of Tsushima exist.

DEI is why we have a huge resurgence in Japanese, Chineses, and Korean developers producing games like Stellar Blade, Black Myth, and why Nintendo & Sony exist.

DEI is why more and more games have HUGE accessibility options with both Sony and MS fully behind this.

DEI was never a bad thing, the entire purpose of DEI is representation of all people, genders, disabilities, etc…

The problem was people used DEI as a default derogatory term to describe what they believed was forced representation, which allowed colorist, racist, sexist, misogynist, homophobic, and xenophobic fools to run away with the negative DEI narrative.

jambola10d ago

you don't get to decide other people's motivations
sorry to break it to you

ABizzel19d ago (Edited 9d ago )

To each their own, however, nothing you said invalidates why some people take offense to DEI incorrectly.

+ Show (1) more replyLast reply 9d ago
Sciurus_vulgaris12d ago

Executives seem to often have an obsession with perpetual revenue growth. There is always a finite amount of consumers for a product regardless of growth. Additionally, over investment is another serious issue in gaming.

Killer2020UK11d ago

The fact that they also rarely have any real expertise in game development compounds things. They'll look at what's been successful elsewhere, lack the knowledge to properly understand why they have been successful and then force a team to 'reproduce' their badly interpreted idea of that success.

We see it so often with sequels to games that were successful too. The team are left well alone, they have a break through hit and all of sudden the money men descend on the IP and completely railroad the dev team's ideas. Usually winds up being 'make the same game but MORE'

LoveSpuds10d ago

This is true throughout all of the corporate and public sector organisations to be honest. CEO's generally move amongst the corporate world without any need to have experience of a particular industry, they simply need to rely on their senior leadership credentials. A CEO of a retail giant will just as easily transition to a CEO role in the energy sector for example.

Not defending CEOs here to be clear, I think it's a huge part of the reason the western world is so fucked up. CEOs don't need to care about the sector they work in, in fact it's better if they don't care if they want to screw everyone to make profits.

GhostScholar11d ago

Companies don’t hire executives to break even. If the goal is breaking even then why start the company in the first place.

Soy11d ago

That's understood; it's getting record profits and expecting to always beat those record profits, and seeing anything less as a total failure. Then they lay people off and raise prices to reach those record profit levels again, just to sate shareholders. It's setting expectations way too high just to spike share prices, then inevitably falling short. It's feeling entitled to being more successful than everyone else. It's the CEOs doing all this to boost their own bonuses.

ABizzel110d ago

Growth benefits the company’s profits and therefore the company’s stock if publicly traded, which pleases the shareholders making them more and more rich, which is why Growth is always at the forefront of the vast majority of any publicly traded company.

More growth = More Money and the people at the top want all the money they can get. I can’t really blame them anyone would love to see their profits go from tens of thousands to hundreds of thousands, to multi-millions it’s almost like a gambling addiction.

But it also goes to show someone how morals can go out the window for a lot of these people, and how amazing some CEOs are when they catch this early and provide a balance solution that takes complete care of their employees across the board while keeping the business sustainable IE: Insomniac Games ALWAYS on the best places to work list. The rest of the industry could learn.

jambola12d ago

honestly, the "real" enemy of gaming, is ourselves
if nobody bought horse armor, shitty dlc would have died almost overnight
if we stood firm and nobody bought games from companies that were bad with layoffs, it would be solved
we're the idiots supporting awful business practices, we are the ones enouraging it

TiredGamer11d ago

I think the reality that we don't want to convince ourselves of is that without the rise of "horse armor" and DLC, game budgets would have essentially stagnated (smaller teams/smaller games), or game prices would have risen much more dramatically than they have. There was an incessant drive for bigger worlds, infinite detail, and hundreds of hours of "gameplay" over the last two decades, that while perhaps a natural evolution of things, needed a suitable funding stream to accomplish.

HyperMoused10d ago

What...CEOs make tens of millions and that doesnt include SLT etc etc...we now have multiple editions of games, in game currency, MT's, battle passes.....and what do we get..worse game than what was coming out 20 years ago....dont drink the cool aid, its this nickel and dime crap that is absolutely leading us to gaming destruction.

senorfartcushion11d ago

This is the worst possible answer to this conundrum. Blaming the masses is blaming the only people who are constantly “told” to buy.

Consumers are the only ones not to blame here. People make their own choices all the time. Disney movies are bombing and DEInis being blamed. Has that been enough to put Disney out of business? No and it never will.

Christopher11d ago

Disagree. Businesses are able to do what they do because people are bad consumers and don't think critically about purchases. Disney got away with doing shit stuff for years and it's just the last year where people got tired of it. It's not like it didn't work for 5 years or so for Disney to do the things they've done. They'll just move onto another way to get people to see movies and it will be just as bad but more profitable until people wake up and realize it.

TiredGamer11d ago

Consumerism drives business behavior. It's not so much "blaming" as it is observing behavior. The point I'm making is that the direction that games have gone are driven by the spending. Consumers are spending on DLC and they are driving the expectation of more glitz and padded out (lengthier) games. If they continue to pay, they will continue to drive that direction until a threshold is reached that forces a change in behavior.

senorfartcushion11d ago

Corporate advertising is the most powerful force on the planet.

This is N4G for god sake, every day there are arguments between people who are Team Xbox and Team PlayStation because they’ve been convinced that having an identity built on paying money to Sony and Microsoft matters more than having one as individual gamers who can play whatever they want.

And THEN we get to the corporate advertising part: to play whatever you want is to sink MORE into the advertising pits, making it so that you can more than one specific product.

jambola11d ago

ah you're right
they were told to buy it, it's clearly impossible to avoid that
if enough people stopped supporting, it would stop
disney not stopping would only be because enough people didn't stop

+ Show (1) more replyLast reply 11d ago
victorMaje11d ago

Agreed. I’ve been saying for years, announce you won’t be buying the upcoming game because of the practices of the previous game, then you only have to stick to your guns once, see how quickly things change for the better.

We have to unite in what we shouldn’t purchase.

jambola11d ago

just imagine a world, fifa came out worse, nobody buys the next one until they see proof it's better and stick to it
or games being forced online for single player and nobody buys it
things would change so fast

HyperMoused10d ago

Just like scooby doo, you have shown us the real monsters are us

+ Show (1) more replyLast reply 10d ago
Inverno11d ago

Greed and greedy people have and always will be the main issue for everything wrong in the world. Everything is a product to be exploited for monetary gain. Even when there are things that could help progress us along for the sake of making our lives easier that thing must be exploited for monetary gains. Anything that tells you otherwise is propaganda to make you complicit.

coolfool11d ago

I've never thought "DEI" (although the way most people use it doesn't match it's real definition) is the problem with games. Good games have continued to be good when they have a diverse cast, and likewise, bad games have continued to be bad. There isn't a credible example I've seen where a diverse cast has been the direct cause of a game being bad.

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