It's always shocking when a stalwart of any industry topples. It makes people pause and lay blame in a variety of directions. Now that General Motors is undergoing bankruptcy proceedings, many will wonder what the next victim of the economic climate will be. Could it even be Microsoft?
There are three primary reasons why GM tanked: First, GM seemed to focus a lot of attention on high-margin gas guzzlers. Next, GM hit some competition from Toyota and Ford (both of which seemed to be better prepared for the economic crisis). Add to that the obvious, a financial recession, and we have a bankruptcy.
Now where does Microsoft stand in comparison? Some might say Microsoft has faced a few serious bumps over the last 10 years but came out fine. Going back to Windows Me (possibly the worst of the Windows releases), it was able to rebound with Windows XP. But the Vista debacle that began in 2006 has brought along an avalanche of criticism.
Although I've never personally agreed with the technical complaints, the fact that there are six or more variations of the software, combined with price tags that have just gone overboard, makes the anger directed at Vista understandable. When you look at the many upgrades and varieties of Vista and now Windows 7, the slew of new System Center products, and the Xbox division (which may continue to do well with the new body controller idea), you have to ask if Microsoft is overbloating its product line. Is it stretching out in too many directions, instead of improving the core products and lowering the cost to consumers?
Some may say, "Well, Microsoft has a ton of money, so there is nothing to worry about." But Microsoft has already begun trimming the fat. Microsoft said in January that it would cut up to 5,000 positions over the next 18 months, starting with an initial 1,400-person wave. And many analysts expect that number to grow.
Beating the competition
What about competition? So far, nothing substantial. Microsoft is actually competing with itself in many ways. People love Windows XP so much that they won't switch to Windows Vista, partly because they've heard it wasn't good, not because they've seen it or it's caused them any problems. Upgrades to Vista and Office 2007 have not been as plentiful as Microsoft had hoped. Windows 7 may turn it around a bit, and certainly a bouncing economy may loosen the money belt with some companies.
Apple may make a better commercial than Microsoft (even I laugh at Apple's Mac-versus-PC ads, while I grit my teeth in anger for Microsoft's Seinfeld/Gates commercials), but the Mac doesn't have much traction in the business market. The Mac is still a niche product, not a threat. Linux supporters have yet to unite. Essentially, Microsoft has one advantage over GM: the competition won't cause its downfall.
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Comments
Nikolai said: Out of curiousity what would you consider a reasonable price for WindowsRemember the vast majority of people buy Windows OEM so the price you see on the shelf is kind of irrelevant For netbooks we know MSs share is about 15 Even if its several times that for regular computers were still talking 5-10 of the purchase price Is that unreasonable Granted most people probably dont realize that so MS might be wise to consider reducing retail cost It probably wont move many more units as again most people have no reason to buy retail no matter the price and probably wouldnt hurt the bottom line too much but it could be a good PR move
David said: Microsoft may have taken a beating lately but I think to say that Microsoft could be the next causalty of the economic climate is just streaching the truth a bitRemember the windows division only one of Microsofts revenue streams unlike GM whos only revenue stream was in car makingMicrosoft will be around for a while yet remember windows is on over 1 billion computers and while PCs continue to sell they all have to have an operating system to run themSo unless linux can became the dominate operating system or Apple finally give PC users access to their operating system Leopard then I do not see Microsoft going anywhere anytime soonAnd if the positve reactions from Windows users to the latest Windows 7 RC 1 is anything to go on about them it is entirely possible that Microsoft might stage a recovery and claw back user who were disgruntled over vista
the fact said: I havent seen this website say anything positive about MSFT most of them are based on the msft hating attitude not the fact Even though this article didnot make a clear conclusion the intention is obivious There are a lot people like you trying to damage msfts reputation but nothing really worked You may think Vista has come to failure it is only in your articles Bring some market data you can read your selfThe title of this article is irrelavent I am not sure if it is OK to take hating attitude but bottom line you should tell the truth the truth the whole truth not half truth you dont a picture of someones scar and tell people thats some one