Arriving late to the internet revolution, Microsoft seems more interested in blocking the competition rather than building a long term business. The software giant has already spent months paying people to use its search engine rather than convince them its a better product. But more payoffs are on the way.
Microsoft is paying or offering free software to developing countries to use its products rather than free alternatives like Linux (though Microsoft denies specific examples). Microsoft is discovering the high price it charges for Windows and Office are pushing poor countries toward free and cheap alternatives. Instead of realizing the long term implications, Microsoft is hoping to lock in these customers with big payoffs now hoping they’ll pay in the future (even though they still won’t be able to afford Microsoft’s prices). This is not a new business model, but it’s a nice way to blow millions of dollars (don’t need that research and development money anyway).
Further, to stave off Google’s free cell phone operating system, Android, Microsoft is looking to payoff cellular providers to use its expensive alternative. Steven Ballmer showed (once again) how disconnected he is from the realities of the software world when he said about Google’s Android “I don’t really understand their strategy. Maybe somebody else does.” I do: Google’s investing in a long term strategy, increasing the value of Google search and other Google products. It’s a way to make more money (even if that money is not from Android licenses).
The truth is Microsoft is still relevant and obviously has a place in the market. The Xbox brand, with all its foibles, is a refreshing example of Microsoft’s innovation and willingness to take risks. Even Xbox has relied on massive payoffs to game developers to push its way into the market – but that’s not a bad thing when it’s part of a long-term strategy. Microsoft wants Xbox to be profitable on its own merits, something that’s harder to say about Windows and its other products.
Even Microsoft’s branding strategy failed because of a lack of a long term plan – one that the company had faith in. After three commercials, Microsoft pulls its controversial Seinfeld ads because bloggers didn’t like them. But they were talking about them! People watched them over and over again to try to understand them. But that understand would have come later on. Instead, the new “I’m a PC” commercials reveal Microsoft’s lack of faith in their own branding and instead let their adversary, Apple, dictate the conversation (just ask McCain how well “change” worked for him).
I’m still an avid Microsoft customer (I’m writing this post on Live Writer). But the company needs to realign itself with the new technology realities. Branding, reminding customers how much we’ve trusted MIcrosoft all these years (even though they were fun to hate), shows they can still be relevant in our lives, for business and fun. Paying off customers, buying also badly run companies (Yahoo), and criticizing successful competitors you don’t understand are not recipes for success. Long term planning and real investment are.
Microsoft’s onslaught into video games would have been more of a stumble had it not been for Master Chief and his aline adventures. Halo not only made the Xbox a success, but it instantly became a cultural phenomenon, redefining the console shooter in terms of AI, graphics, gameplay, and story. With amazing multiplayer still played years after release to the sub-culture of Red Vs. Blue, Halo spread its web of influence to be an icon, revolutionary, and bad-ass all at the same time. Halo sequels have broken sales records, with Halo 3 holding the record for biggest day of sales in U.S. history, more than $170 million (only to be trounced 7 months later by the multi-platform cheater GTA IV). Still, it’s impossible to play a first-person shooter these days without feeling the armored hand of Halo siphoning your gaming skillz as you ponder why you’re settling for anything but the best (selling).
Bill Gates hyped a huge announcement for the Xbox 360 at this week’s CES, and like geeks upgrading their hardware, we jumped on the hype without thinking. The biggest announcements were more downloadable movies and the beginning of IPTV, or in Gates’ words, using the Xbox 360 as a set-top box. BT Group, a leading British telecom company, was announced as the first provider of content through this surface. 
Mother stopped telling me to be a doctor and started getting me programming lessons. From 1993 to 2006, Bill Gates topped the Forbes 400 as the richest man around, at one time having assets worth over $100 billion. His company, Microsoft, has depreciated significantly after the dot com bubble burst, but Gates is no less a power house representing the epitome of geek revenge - success. Gates has a dream job building a monster company from the ground up. He was so wrapped up in building Microsoft, he took an multi-decade leave of absence from Harvard. His billion dollar company, however controversial, is a geek playground from operating systems to online software to video game consoles and expanding. Bill Gates is the geek we all hope to become. His wife’s hot too.
Microsoft’s Xbox brand has been facing an up Mount. Fuji battle since its launch. And while the 360 has faired better than the original Xbox, some recent numbers shown by Famitsu (translated by 
