So Microsoft is failing because Apple, Google and Nintendo is performing better in seperate markets ? What about the Nintendo Office Suite, the Apple SQL Server or the Google Zune ?
Is Microsoft in trouble?
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Re: Is Microsoft in trouble?
#12So Microsoft is failing because Apple, Google and Nintendo is performing better in seperate markets ? What about the Nintendo Office Suite, the Apple SQL Server or the Google Zune ?
The Apple SQL Server is MySQL or Postgres. The Google Zune is Android. Lots of people still pay the premium price for Microsoft Office but they don't need to. I haven't used it in years. Instead I use Google Docs and OpenOffice.
Re: Is Microsoft in trouble?
#13Microsoft in the recent decade, has tried to indulge itself on different domains of IT. Obviously, it has failed on all of them, as stated by the author of this article. IMO, on contrary to the author, MS should stick to desktop/laptop Operating Systems. Desktop usage might have decreased but laptop is not going anywhere. There is so much market untapped in the world, I can't see the end of desktop OS. I don't see no…
>Microsoft in the recent decade, has tried to indulge itself on different domains of IT. Obviously, it has failed on all of them, I thought Sharepoint and SQL Server were huge hits - no?
I am sorry if I was not clear enough, but my interpretation of other domains was music players, tablets,etc. I agree Sharepoint and SQL Server are huge hits and they are doing good in corporate applications.
Re: Is Microsoft in trouble?
#14What?
a) XBOX usage destroys Wii in usage, games purchased, and subscription fees all of which are better indicators of the platform' success than hardware units sold which are traditionally a loss leader. And oh yah, XBOX is wildy profitable. Meanwhile Wii sales are down 45% since last September!
b) They are JUST launching their mobile platform which has gotten fair to begrundgingly good reviews and is opening in 30 markets supported by HTC, DELL, LG, AT&T, Verizon, etc. You can expect MSFT to be AT WORST the #3 player in an insanely huge and growing market.
c) BING just signed an innovative deal with Facebook, Google's copying features from them, and they're gaining traction while Google has been stagnant and slightly down year to date.
And that's ignoring that Windows 7 is on a tear, and a great product to boot.
2010 has been a huge year for MSFT, if they manage to keep executing at this level they are going to win a couple of these markets.
Microsoft plays loooonnnnng ball and they've got tens of billions in the bank, I certainly wouldn't say they're in trouble.
DATA:
http://www.crunchgear.com/2010/10/15/uh-oh-september-wii-sal...
http://www.gamespot.com/xbox360/action/halo3untitledodstgame...
http://www.engadget.com/2010/10/11/microsoft-announces-ten-w...
http://www.businessinsider.com/chart-of-the-day-total-cash-a...
http://siteanalytics.compete.com/bing.com/
http://www.comscore.com/Press_Events/Press_Releases/2010/10/...
http://www.comscore.com/Press_Events/Press_Releases/2010/6/c...
Re: Is Microsoft in trouble?
#15Earlier quoted context omitted.
>Microsoft in the recent decade, has tried to indulge itself on different domains of IT. Obviously, it has failed on all of them, I thought Sharepoint and SQL Server were huge hits - no?
They are. Sharepoint in particular has been a surprise breakout hit. But even SQL Server has done very well and their recent BI push has been a pretty incredible success. Their online services, via BPOS, have also done very well. The issue is that in more consumer targeted areas MS is in trouble. But in the enterprise they're probably stronger now than in any time in recent memory.
> Sharepoint in particular has been a surprise breakout hit.
Indeed. Tech historians will scratch their heads about that for generations. It's such a horrid product to use that one can only wonder how bad its competition is.
Re: Is Microsoft in trouble?
#16> "In video game consoles, the Xbox 360 is trailing far behind the Nintendo Wii in market share, despite the fact that the Wii is using older generation technology (VGChartz, 2010)." I was with them until here. The Xbox 360 has claimed a gigantic share of the market starting from nothing just a few short years ago. Compared to Nintendo, whose sales of the Wii have slowed to a relative crawl, and whose mobile gaming m…
Good points, but let me offer a few counterpoints:
- All three consoles started from nothing just a few short years ago, and in fact the XBox 360 had a year head start on the PS3 and the Wii (launching at the end of 2005 versus end of 2006 for the PS3 and Wii.)
- According to VG Chartz, the Wii has sold 8.97 million consoles from Jan-Oct 2010, while the Xbox 360 has sold 6.8 million and the PS3 has sold 7.1 million. Yes, XBox 360 sales faired much better over the summer, but we will have to wait and see if this indicates a sustainable trend or a blip.
- Yes, Xbox 360 is doing well from the standpoint of attach rates, with an 8.9 versus around a 7ish for the Wii. It appears the PS3 has been gaining significant ground lately with its attach rate.
- In the fiscal year 2010, Microsoft's Entertainment and Devices Division (which includes the Xbox 360) generated $8.5 billion in revenues and just $679 million in operating income. Considering Microsoft's consolidated operating income in 2010 was $24 billion, this $679 million represents only about 3% of Microsoft's profits.
- Ultimately, the Xbox 360, the PS3, and the Wii may be irrelevant given the emergence of connected televisions, thin devices, and cloud-based gaming.
Re: Is Microsoft in trouble?
#17What? a) XBOX usage destroys Wii in usage, games purchased, and subscription fees all of which are better indicators of the platform' success than hardware units sold which are traditionally a loss leader. And oh yah, XBOX is wildy profitable. Meanwhile Wii sales are down 45% since last September! b) They are JUST launching their mobile platform which has gotten fair to begrundgingly good reviews and is opening in 30…
What?!
Xbox is wildly profitable? xbox (original + 360) has lost MS tens of billions of dollars in its history (not an exaggeration). The fact that its just now (the last 2 quarters, an no more) pulling in profits in the hundreds of millions means that they'll break even in 5-10 years.
If you gave me $10, and I gave you back $0.50, would you consider it a "wildly profitable" venture for yourself?
Re: Is Microsoft in trouble?
#18So Microsoft is failing because Apple, Google and Nintendo is performing better in seperate markets ? What about the Nintendo Office Suite, the Apple SQL Server or the Google Zune ?
The Apple SQL Server is MySQL or Postgres. The Google Zune is Android. Lots of people still pay the premium price for Microsoft Office but they don't need to. I haven't used it in years. Instead I use Google Docs and OpenOffice.
How is this an argument? You personally don't use a product, ergo it's dying?
Re: Is Microsoft in trouble?
#19What? a) XBOX usage destroys Wii in usage, games purchased, and subscription fees all of which are better indicators of the platform' success than hardware units sold which are traditionally a loss leader. And oh yah, XBOX is wildy profitable. Meanwhile Wii sales are down 45% since last September! b) They are JUST launching their mobile platform which has gotten fair to begrundgingly good reviews and is opening in 30…
What?! Xbox is wildly profitable? xbox (original + 360) has lost MS tens of billions of dollars in its history (not an exaggeration). The fact that its just now (the last 2 quarters, an no more) pulling in profits in the hundreds of millions means that they'll break even in 5-10 years. If you gave me $10, and I gave you back $0.50, would you consider it a "wildly profitable" venture for yourself?
In fact if I was MSFT and you gave me $25.82 (current stock price) I'd give you back $0.64 a year and a share of my stock (current dividend price).
And in fact, they've made that sale 8,650,000,000 times so far (current outstanding shares).
http://www.dividend.com/dividend-stocks/technology/applicati...
EDIT -> You're ignoring that the division DOUBLED profits over the last year, what if they maintain that growth rate?
Or 1/4 of that growth rate?
Either way YES, that's a solid return on investment.
Re: Is Microsoft in trouble?
#20What? a) XBOX usage destroys Wii in usage, games purchased, and subscription fees all of which are better indicators of the platform' success than hardware units sold which are traditionally a loss leader. And oh yah, XBOX is wildy profitable. Meanwhile Wii sales are down 45% since last September! b) They are JUST launching their mobile platform which has gotten fair to begrundgingly good reviews and is opening in 30…
Also, this is a must-read article about the financial and actual state of bing:
http://www.businessinsider.com/microsoft-is-trashing-us-for-...
Essentially, for every 1% non-reoccurring market share (worth $150 million), MS is spending $500 million.