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Microsoft in deep trouble?

Internet Explorer, MSN, Windows, Office. Four of Microsoft's biggest products are under attack. What does this mean for Microsoft and the Xbox 360?
Bruceongames - contributor
Published: 403 days 3 hours ago | Article | Xbox 360 | PC | Industry News
 
 

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Fishy Fingers - 403 days 4 hours ago
1 -
Almost thought Bruce had written a negative MS article, but no, he spun it around at the end to belittle Sony (surprising) and Nintendo. Even though Nintendo are destroying both MS/Sony. But that doesn't count because it's not in HD right? Or is it easier to simply ignore the competitor beating you to make you chosen platform seem better?

Is he suggesting that MS may move more toward gaming than concentrate on their falling OS share? Because thats ridiculous, Windows (and corresponding software) is MS cash cow, it's what allows them the opportunity to fund their gaming division.

"Microsoft are in the middle of one of the biggest shifts that any major corporation has ever made. From an IT company that did a bit of gaming to a consumer media company that does a bit of IT." Ummm... No.
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pathetic fanboys - 403 days 3 hours ago
1.1 - falling OS share?
i think they still sit at about 90%(i'm sure i read that the other week on here), when they are down to 50%, perhaps people can start asking questions. until then, anything else is just speculation.
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Fishy Fingers - 403 days 3 hours ago
1.2 - ^
Well, Apple have seen a 7% share and expected by many to hit 15-20% by end of 2009 and Linux is obviously gaining a lot of ground, perhaps not so much in the PC domain, but on a commercial side they certainly have.

Vista has been a disappointment, I'm sure there is cause for concern (not worry, but some concern) for MS regarding their OS share, admittedly they're still way ahead of the pack but Windows are in the decline in the home space. Windows 7 could be a very important piece of software for MS.
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agmsd - 403 days 2 hours ago
1.3 - @ 1.2 Fishy Fingers -
You're right... I think the only thing that make still using Windows on my dual boot operating systems with Ubuntu Linux is the fact that there I still need Adobe Products. In think with the move taken by many companies to support Linux after it began to have install base will make it even more attractive to users. I think if adobe , Autodesk and Others which produce largely in need applications supported Linux we will see the end of Windows sooner than expected.
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SL1M DADDY - 403 days 2 hours ago
1.4 - It's Bruce for goodness sakes...
People, we all know this crap journalist and we all have learned that he is in fact in bed with MS. Move along and forget you ever saw his sad dribble and for goodness sakes, don't click the link and give him hits.
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el_bandito - 402 days 23 hours ago
1.5 -
@AGMSD

I truly agree with you. I am a heavy user of Autodesk products and am stuck with PC all the way. I bet several others too. I hope Autodesk would offer native Mac OS versions of their software. As soon as these programs become genuinely and perfectly compatible with the other OS, a lot of people might jump to Macs soon.
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Coheno - 402 days 22 hours ago
1.6 - @Fishy
Ohh noes, not Bruce again!yeez...*sigh*
Thought exactly the same, but as you said it, spun it around..
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gaffyh - 402 days 18 hours ago
1.7 -
Bruce on games = Do not read.
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SaiyanFury - 402 days 16 hours ago
1.8 - This is the "beginning" of the games industry?
Umm, can someone illustrate to this guy that videogames have been around since the days of the first Windows OS? That means 25 years to those of you who are too young to know how far back that goes. What is it with this guy? Use a title to sound like he's badmouthing MS but in the end ends up defending MS and elevating them whilst attacking Sony and Nintendo. I thumb my nose at this article.
1.9 SantaClaus | 402 days 16 hours ago - comment has been reported as SPAM -
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The Lazy One - 402 days 14 hours ago
1.10 - eh...
linux wouldn't be a great main stream OS. Because it's open source, it would be way too easy to hack. The benefit of windows is that it's closed. Once linux got a significant part of the market, it would be so easy to hack it would be ridiculous.
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Gondee - 402 days 13 hours ago
1.11 -
All this means, is that MS will have to do some real thinking now. Competition is the best thing for us.
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mikeslemonade - 402 days 6 hours ago
1.12 -
Microsoft can get rid of some of the unprofitable divisions. The divisions that are most in danger are the 360 and the zune because they are the newest and they are not making them money.
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The Lazy One - 401 days 22 hours ago
1.13 - @mikeslemonade
They aren't making them money NOW, but they're projections are a lot better than some of it's other divisions.

360 is breaking really close to even, and zune could if they redesigned it with a pricepoint that wasn't just $10 different than the comparably ipods. Microsoft just needs to understand that Apple's brand name is worth more than $10 when you're dealing with $100+.
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Bruce Everiss - 403 days 3 hours ago
2 -
I'm such a dumbass...
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BlackCountryBob - 403 days 2 hours ago
2.1 -
You said it!

I was starting to worry about you Bruce, it has been a while since your particular brand of one sided pointless articles have been seen on N4G. You have competition though now because HipHopGamer has moved to your platform of sensational headlines to attract hits so you are gonna have to up your game.

Anyway, dumb article but it is impressive you were able to twist a story about MSN and Windows losing popularity into a pop at Sony.
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Pixel_Addict - 403 days ago
2.2 - YES! Finally...
an intellegent person can agree with a Bruce on games! I feel sorry for gamers name Bruce.
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Ilikegames76 - 403 days 3 hours ago
3 - MS should just
stick to making software, at least you can patch the software.
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el_bandito - 403 days 3 hours ago
4 -
" Sony, decided to make so many strategic and tactical mistakes and to basically throw away their market dominance"

How can mistakes be "strategic and tactical"?
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Kushan - 403 days 3 hours ago
4.1 -
I believe he's saying that the tactics and strategies they used were mistakes, as opposed to the mistakes themselves being tactical or strategic.
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el_bandito - 403 days 3 hours ago
4.2 -
Oh I see. Thanks for the enlightenment buddy. I thought the sentence was poorly constructed.
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callahan09 - 403 days ago
4.3 -
He also said they decided to make those mistakes. Sounds off to me, too. Somehow I don't think they intended to make any mistakes. For that matter, the jury is still out as to whether or not they even made mistakes. The PS3 could still work out in Sony's favor, especially because it costs much more than the 360 and has much less software and yet is selling very admirably in comparison to its cheaper rivals. Whenever they decide to drop that price, it'll come alongside an obviously even more massive library of quality games, and I think you'll see the PS3 take off like never before.
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yojoe26 - 397 days 17 hours ago
4.4 - LOL El bandito
that is hysterical! i didn't even catch that....
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Kushan - 403 days 3 hours ago
5 - What does it mean?
"Four of Microsoft's biggest products are under attack. What does this mean for Microsoft and the Xbox 360?"

Simple: Bugger all - it's a completely unrelated market. The only effect it has is reduced profits for Microsoft as a whole, but they're still making shedloads of cash.
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MorganX - 402 days 15 hours ago
5.1 - And we benefit ..
All the way around. Microsoft makes better products, competition spurs better products. Take Google Chrome. It's like getting a broadband upgrade its so fast, but, it's UI could use a little polish. Still a better product sure to make IE better.

Vista SP2 is looking good. A bit faster and quite stable with Bluray working great with the live file system.

Competition is good.
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Danja - 403 days 3 hours ago
6 -
The thing is..ppl now have alot more choices now than they did back then...

IE is no longer the best browser everyone knows it..Vista was just a compete disaster on a whole different level..

Zune isn't taking off as M$ had hoped...MSN..is just there but no-one uses it...

the Xbox 360 is the only thing that's going really well over at M$ these days , but they're the worlds biggest software publisher so...they'll be fine with a couple of failures and shrinking market share....ppl are just smarter and prefer quality these days..
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darkride66 - 402 days 22 hours ago
6.1 - But is it going really well?
The last 3 fiscal years for MS games division looked like this. Loss: 1.2 Billion, Loss 1.8 billion, Profit $400 million.
It doesn't take a math whiz to figure out that MS needs 6 more years of earnings from the 360 at this rate to even break even. How long do you really think a company will support a losing business before trying a different strategy? That's what gives me chills when MS started talking about a "cheaper, digital distribution hub"
We don't want or need another Wii out there, but you can't blame Microsoft for eyeing that route after the billions lost on the original Xbox and with the 360's money making prospects not looking good.
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Danja - 402 days 18 hours ago
6.2 -
lets be a lil honest here do you really think M$ cares right now about there loses on the 360...yes they do , but at the same time it seems to me that they're willing to take loses so they can gain even more market share.
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tudors - 403 days 3 hours ago
7 - A business that does not accept change...
will not remain in business, MS have there fingers in a lot of pies and are smart enough to be aware of the problems they are facing and will always be working on a solution, DLC will be big and there gaming division will survive and do well. There OS and other software problems will need a big overall, it will not be so long before we have OS software/webmail/browser etc built into our TV's, but we will always need security and we will always need a company like Microsoft to be a part of softwares involved in having a good online source with the proper security. Firefox is fantastic but the only reason that Explorer has had all the security issues is because it has been the choice of the hacker, the more main stream Firefox becomes the more likely it is to be hacked, MS are always a target for hackers which makes thing more complicated, as far as the OS is concerned MS need to offer Vista buyers free upgrades to there next windows version.
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bviperz - 402 days 18 hours ago
7.1 - Not to mention
games just play better on windows os. Hence games for windows...
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ultimolu - 403 days 3 hours ago
8 -
Love how this guy manages to throw Sony and Nintendo in the mix when his title states: 'Microsoft in deep trouble'?

What the hell does Nintendo and Sony have to do with the article to begin with? He couldn't go without mentioning those two companies could he...

Sony didn't throw away anything. They were just arrogant in the beginning and are learning things the hard way. They're getting back on track and will continue to do so as time passes by.
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kwyjibo - 403 days 1 hour ago
8.1 - How can you NOT mention competitors?
Of course he had to mention Sony and Nintendo, just as he mentioned Google, Firefox and Linux. If you want to provide any kind of analysis to a firm, you're going to have to look at the rest of the market.

Microsoft do not exist in a vacuum, no matter how much you think they might suck.
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ultimolu - 403 days ago
8.2 -
That's not the point I was making.
It seemed as if he was taking cheap jabs at Sony and Nintendo.
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Tony P - 402 days 22 hours ago
8.3 -
Sony has made missteps; this is true. What's more the writer goes on to link you to a source (albeit another article by him, ha). So I don't have a problem with that one.

But I dunno how you can lampoon the Wii's "toy" status then spin it like it's a great thing for MS. Sure, MS gets a nifty share of hardcore gamer dollars, but that's scraps compared to the unholy legions of Wii owners.
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Marceles - 403 days 3 hours ago
9 -
bruce and hiphopgamer should join forces
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Mutley416 - 403 days 3 hours ago
10 -
M$ in trouble...
With the Global economy the way it is, alot of companies are in trouble.

People are really starting to like there Macs, and Linux-

but XP is still the Gold Standard- Watch to see what happens with Yahoo-
M$ will be fine. Bill can Roll with the Punches!!!
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theEnemy - 403 days 2 hours ago
11 -
Bill Gates retiring is a smart move on his side I guess.
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SprayandPreycom - 403 days 2 hours ago
12 - wow
theres a sony in trouble article then 2 hours later theres a microsoft in trouble how peachy when you really think about it were all in trouble. AHHHHHHHHHH
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Jdoki - 403 days 2 hours ago
13 -
As Fishy said in the first post - it almost looked like a Bruce article taking a swing at MS!

MS has it's fingers in a lot of pies - that's not going to change. The MS we know now is going to evolve over the next few years - and possibly become a much smaller, leaner and more agile company.

But I'm not entirely sure I agree with Bruce that the entertainment division is going to be a huge part of their continued dominance or success.

The Zune isn't making any impact on the mp3 market.

The 360 has been a big black (red!?) hole for money since inception - and although I can see the long term strategy MS is working towards they have a lot less leverage in this area and I don't see a clear strategy for dominance beyong changing their 'A PC on every desktop' mantra to 'An Xbox in every living room'.

The most worrying thing for MS' entertainment division (in my opinion) is that even though they control the OS market, there's not a lot of synergy between Windows/PC's, Xbox, Zune and so on.

For example. I own both a 360 and PS3 - yet I use my PS3 for streaming media, not the 360. I have no 'fanboy' allegiance to either console, I just want to use the best tool for the job - and the PS3 provides that.

Why are MS not encouraging Zune owners to manage their music libraries on the 360 by providing a class leading music interface and store front on the 360? Why are they not launching accessories that encourage Zune users to dock their Zunes with a 360 to take advatage of the fact that many TV's/360's are hooked up to 5.1 sound systems?

MS need something to distinguish themselves from the competition and really make an impact on the living room, media centre space.

It would seem obvious that considering most people are using Windows, that the 360 would integrate best with this - but it's not the case at all. No one I know with a 360 uses it as a connected media centre device - and those people I know who own both consoles also use the PS3.

This generation MS have proved they can make a good games machine and 'steal' market share. Removing the 'gaming' side of both consoles what does the 360 offer that is better or unique compared to the PS3? That's where MS are losing out. The Next Xbox will need to address all those areas where they are lacking compared to the PS3 and compared to what consumers actually want.

The worrying thing is, by the time the Next Xbox launches (and assuming it adds a lot of value - like web browsing, bigger hard drive, access to 'cloud' computing, better PVR features and so on), Sony may have found they have gained a lot traction in this space because they are already offering many of the features MS is not.
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SlippyMadFrog - 402 days 22 hours ago
13.1 -
Good post. I just want to ask a question though. What can the PS3 do that the Xbox360 can't regarding media streaming? I'm not debating, I realy want to know.
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Jdoki - 402 days 19 hours ago
13.2 -
Absolutely nothing really in terms of features (and the 360 may possibly have better DivX support - although not sure these days).

I just find the PS3 far easier and quicker to use.

For example I use Nero. I fire up Nero Home and all my content appears in my PS3. I used to use Azureus for Bit Torrents, and it would immediately appear in my PS3. I took my PS3 round to a mates house (who wanted to compare a PS3 to a 360 as he intends to buy one or the other), and his media server just magically appeared in my PS3, but that didn't happen with the 360.

I'm not 100% sure about this, but the 360 seems happier linked to Media Centre. I found it difficult to get to work reliably and a bit hit and miss whether it would connect.

So it really came down... One is zero faff and hassle, the other is a little bit of a faff. Plus on PC I find Media Centre a little clunky to use... So I went with the easier option!! :)
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SlippyMadFrog - 402 days 4 hours ago
13.3 -
Cool. Thanks for the feedback.
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militant07 - 403 days 1 hour ago
14 -
i dont own any share in microsoft.
so i dont care if that dosnt effect xbox360 and i guss its WILL NOT and just fanboys bullshit talks
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titntin - 403 days 1 hour ago
15 -
It could be an interesting talking point, but instead of any in depth thought or analysis it degenerates into unproven assertions and the usual b*tching about the competition.

If MS were committed to being a long term player in the entertainment market, they would be concentrating on building and keeping first party studio's for the long run. They actually have enough money to be able to do this. But they have ditched most of their studio's and have no significant presence developing software now - with Blue Box and Rare being the obvious exceptions. I guess none of knows their ultimate long term 'plan', but ditching software dev houses the way they have in the last couple of years is NOT a prelude to seeking dominance in this market.

As for increasing market share - if you step back a bit, that doesn't appear to be the case. The 360, fine and succesful as it is, has only shifted as many units as the first xbox to date. Compare this with how much the market has grown (there are so many more people who now own game systems) and you can see that as a percentage of a much bigger market, their current market share is actually smaller. Of course sales are strong, partiularly after the recent price slashing, so the share continues to rise, but it can't be claimed to be a 'qunatum shift' in market share, unlike the WII which has stolen the show.
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Jdoki - 403 days ago
15.1 -
Personally, titntin, I think MS spinning off it's 1st party devs might be a good move.

MS appear to be making a clear dilineation between what they do (make the Xbox hardware), and what developers do (obviously, make the games).

In terms of costs which is cheaper...

- Owning a first party dev and paying all the associated costs (including delays etc)

Or

- Hiring the best developer to create the game they want (and bound by a contract for delivering it).

MS get to control expenditure (how much they are willing to pay for the game to be delivered) and negotiate terms for the delivery of the product - the developer is free to control their own costs and resources etc. If MS are putting in place a contract with a developer to produce the exact game they want it's no different from giving the design brief to a 1st party. Plus MS can control the IP's they own and alloacte them as they see fit.

A couple of examples...

Bungie. MS no longer have to pay for Bungie's upkeep. MS also own the Halo IP. MS can now negotiate with Bungie to develop the next Halo title. Let's say MS don't want development to start on the next Halo game for another 3 years - that's three years they don't have to pay for Bungie.

Epic. MS own the Gears IP, but employ Epic to develop the game (as they are obviously the best at what they do). I read that the original Gears cost about 10million USD to make. If MS can pay 10million-20million for each Gears game, that has to be cheaper than bank-rolling the entire company long term.

Rare. MS own Rare, but most of the talent from the golden N64 era is no longer there. MS have essentially paid for a name and few IP's (Nintendo retained some of the IP's when they sold their stake to MS). Rare's output has been fairly low since joining MS, and none of it has sold at mind blowing levels (or even been AAA really). Yet MS have to bank roll Rare every month.
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titntin - 402 days 23 hours ago
15.2 -
Thanks for a well reasoned comment - not an every day occurrence on N4G anymore! :)

I have to disagree that its a good thing though. If you are a financial analyst, you would concede that it controls costs. But as a gamer, I'm much more interested in seeing inventive exclusives on the platform, and this method of working does not help to produce this.

As a counter example for how wasteful their approach is to trying to secure decent content, just look at the DLC for GTA and Tomb raider. Big waste of cash, which they could have used to support a first party team working on genuinely new ideas.

Either way, as long as I get great games I'm happy enough, but I still don't think their first party approach is indicative of a company in it for the long term. Only time will show though! :)
16 Sergeant Osiris | 403 days 1 hour ago - User only got 1 bubble - Show
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mirroredderorrim - 403 days ago
17 -
IMO, Vistas failure is everyone's gain, the competition.

I am wondering if Bruceongames was a man constructed from within the bowels of Fortess Von Microsoft.

Because you're spinning me right-round-baby!
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somekindofmike - 402 days 23 hours ago
18 - Referring only to Windows
I personally belief what Microsoft need to do is start from scratch with Windows. What I don't mean is forget everything they've done already. What I mean build the new version of Windows from scratch incorporating things which work from older versions of windows (like Direct X & the user interface) but just start with a clean slate. No Copy and Pasting lines of code from old versions windows.

This would hopefully result in a version of windows which does all the things we are familiarly with, but is written with as few a lines of code as possible. hopefully resulting in few a problems as possible and also resulting in a less resource hungry OS.

(I am of course referring to the rummours that Windows Vista is just patched code from XP, XP patched code from ME, ME patched Code from 98, 98 patched code from 95)

I have heard rumours before that Microsoft have deals with hardware manufacturers to make each version of Windows more Resource hungry than the last forcing the Customer to purchase a new system each time they want to upgrade to a new OS. I take this with a pinch of salt, and think it is just lazy developing on MS behalf. but it does make you think when if I were to choose to upgrade from OS X Tiger to OS X Leopard on my Mac, I am meant to see a performance boast because Leopard has been coded to better make use of the hardware, because they have had "X" number of years to get use to the hardware inside the machine and know how to code for it better now then when they wrote the old OS (or something like that).
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DJ - 402 days 22 hours ago
18.1 - I recently purchased a new computer
And Vista really is a huge hassle. There's constant glitches in the internal menu screens, I have to get administrator permission twice in a row just to save a picture file (even though i AM the administrator), and my programs will regularly crash for no reason. I do heavy 3D rendering, so you can imagine how horrific it is to watch a scene crash after completing only three frames of animation.

I want to go back to XP as soon as possible.
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