Microsoft just announces its first ever quarterly loss; the function of an accounting move to write down the purchase of aQuantive, an ad serving company for which it overpaid and, perhaps, mismanaged. But the story of the quarterly report points out a larger financial issue which one might debate is of questionable strategy. In order to keep current PC sales moving, Microsoft has agreed to allow every new purchaser of a PC with Windows 7 a $14.99 upgrade to the soon-to-be released Windows 8 – an exciting new operating systems that will change the way PC users navigate their machines. Windows 8 is much more touchscreen-like and tile operated.
I understand that their relations with PC manufacturers is important, but I’ve never approved of this sort of pricing approach. Before new model years, car sales do slow. You have to plan for that. As I’ve written before, Windows 8 should have been renamed Tiles and this mad break with the past celebrated. Like when Windows 3 was launched. Microsoft’s brand diaspora and product diaspora, has slowed growth. This is one time, however, when the company should make a sharp cut and move on. Windows 8 is a very cool product. Even the techie “grouchos” aren’t killing it. It’s time to take back the news cycle and move on from Windows. Peace!
