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M$2.00  Funded By Mahalo ? |  April 24, 2009 02:43 PM

Are you surprised the Microsoft posted a 32% drop in profits? Four out of five Microsoft divisions recorded lower sales.

WSJ

Server and tools (up)
Games (down)
Office and business (down)
Internet (down)
Windows (down)

Do you think Microsoft is still interested in buying Yahoo?
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April 24, 2009 03:10 PM
Not particularly.

My personal feeling is that they are just hemorrhaging bad press in combination with the bad business decisions of their past.

They still have the OS for the vast majority of computers in the world, but Apple is just destroying them where image is concerned.

And then there is Vista.
I agree with the Microsoft campaign where they tried to prove that "Vista is not that bad", but the fact is that people like my parents are really annoyed with things like when a message pops up every time they install something saying this is not certified genuine 100% grade A Microsoft software, are you sure you want to risk the fate of the world by installing this?

I think their fortunes could turn around quickly if they could steal a few employees from the Apple UI team and buy up a couple more anti virus companies.

And a personal peeve of mine, please loose the regional language versions of Windows and allow me to switch languages on the fly (90% of the reason I switched to a Mac after 20 years of Windows.

If they play the cards right with Windows 7 (or maybe 8 that's in the works) I think things can turn around. But if they don't change the general "gut feeling" people have right now, they are in deep trouble.


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April 24, 2009 03:17 PM
I'm not too surprised. They are in particular markets that will get stung by the downturn.

One thing that businesses cut back on during recessions are new computers. And if you're not buying new computers, you won't buy new Windows software, probably no new Office software, etc.

I don't think this shows that Microsoft is weak as a company. They have had years upon years of very solid growth. But because their divisions are so ingrained in the business sector (which is hurting badly), there's just no way around it.

Having said that, they do have a weakness in the online market. Their search and ad business is getting beaten soundly by Google, and they need something to fix it. After their debacle with Yahoo though, I don't think they're going to go at it again. At some point, it just starts to look like they're begging, and people will start thinking "well, if they want Yahoo so badly, what's wrong with their business? They must be worse off than we thought." And the board of directors do that.

I do think that as a whole, their business will rebound. But they are going to suffer just like everybody else while business spending is down.

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