> The following is from:
>
>
http://uk.theinquirer.net/?article=39087>
> Enjoy :)
>
>
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> Microsoft admits Vista failure
>
> Actions speak louder than PR
>
>
> By Charlie Demerjian in Beijing: Saturday 21 April 2007, 12:20
>
> WITH TWO OVERLAPPING events, Microsoft admitted what we have been saying
> all along, Vista, aka Windows Me Two (Me II), is a joke that no one wants.
> It did two unprecedented things this week that frankly stunned us.
>
> Dell announced that it would be offering XP again on home PCs. The second
> that Vista came out, Microsoft makes it very hard for you to sell anything
> other than Me II. It can't do this on the business side because it would
> be laughed out the door, but for the walking sheep class, well, you take
> what you are shovelled.
>
> This is classic abusive monopoly behavior, Microsoft wrote the modern book
> on it. It pulled all the major OEMs in by twisting their arms with the
> usual methods, and they again all fell into line. Never before has anyone
> backpedalled on this, to do so would earn you the wrath of Microsoft.
>
> But Dell just did. This means that Me II sales are at least as bad as we
> think, the software and driver situation is just as miserable, and Dell
> had no choice but to buck the trend. If anyone thinks this is an act of
> atonement for foisting such a steaming pile on us, think again, it doesn't
> care about the consumer.
>
> What happened is the OEMs revolted in the background and forced
> Microsoft's hand. This is a big neon sign above Me II saying 'FAILURE'.
> Blink blink blink. OK, Me II won't fail, Microsoft has OEMs whipped and
> threatened into a corner, it will sell, but you can almost hear the
> defectors marching toward Linux. This is a watershed.
>
> The other equally monumental Me II failure? Gates in China launching a $3
> version of bundled Me II. Why is this not altruism? Well, it goes back to
> piracy and how it helped enforce the MS monopoly. If you can easily pirate
> Windows, Linux has no price advantage, they both cost zero.
>
> With Me II, Microsoft made it very hard to pirate. It is do-able, you can
> use the BIOS hack and probably a host of others, but the point is, it
> raised the bar enough so lots of people have to buy it. Want to bet that
> in a country with $100 average monthly salary, people aren't going to
> shell out $299 for Me II Broken Edition?
>
> What did MS do? It dropped the price about 100x or so. I can't say this is
> unprecedented, when it made Office 2003 hard to pirate it had to backpedal
> with the student edition for about $150. This time though, things are much
> more desperate.
>
> If you fit Microsoft's somewhat convoluted definition of poor, it still
> wants to lock you in, you might get rich enough to afford the full-priced
> stuff someday. It is at a dangerous crossroads, if its software bumps up
> the price of a computer by 100 per cent, people might look to
> alternatives.
>
> That means no Me II DRM infection lock in, no mass migration to the newer
> Office obfuscated and patented file formats, and worse yet, people might
> utter the W word. Yes, you guessed it, 'why'. People might ask why it is
> sticking with the MS lock in, and at that point, it is in deep trouble.
>
> So, it did the unthinkable, and dropped the price. I won't bother to hunt
> down all the exec quotes saying how people can't afford clean water would
> be overjoyed to sell kidneys to upgrade to the new version of Office, but
> they are out there. This was a sacred cow, and it is now hamburger backed
> up against the wall.
>
> These two actions by Microsoft are proof of what I suggested three years
> ago. Microsoft has lost its ability to twist arms, and now it is going to
> die. It can't compete on level ground, so is left with backpedalling and
> discounts of almost 100 times.
>
> What we are seeing is an unprecedented shift of power. It is also an
> unprecedented admission of failure. And the funniest part about the moves
> made? They are the wrong things to do. Microsoft is in deep trouble. µ
>