EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

10.09.10

Massive Implosion at Microsoft: Another Business Unit Dies

Posted in Microsoft at 6:46 pm by Dr. Roy Schestowitz

Sunken ship

Summary: Massive, which Microsoft spent a lot of money buying, is finally being buried

THE list of Microsoft’s deprecated services, dead products, and discarded divisions grows at a fast rate and it is not deniable that Microsoft suffers a lot right now. Maybe its investors didn’t quite get the memo because Microsoft spends a lot of money making promises and showing/alluding to vapourware. The truth is, the core of the company is stagnating and Microsoft just cannot find good ways to evolve.

The next wave of destruction within Microsoft is Massive, which previously suffered layoffs.

Microsoft Nick has covered this:

Despite saying in May that the effectiveness of in-game advertisements blew away expectations, Microsoft reportedly is shuttering its Massive video-game advertising unit four years after acquiring it.

Here’s more:

An online report suggests Microsoft’s in-game advertising unit, Massive, will be shut down before the end of the month.

Ad industry trade publication Adweek cites “sources close to the company” and “insiders at Microsoft” in reporting that Massive General Manager J.J. Richards has been seeking new employment with other unit members reportedly being reassigned throughout the company.

The report suggests that Microsoft had been shopping around a Massive buyout in the past few months, reportedly seeking a high six-figure or low seven-figure sale to rival ad network Double Fusion.

At this rather alarming shrinking rate, all that may remain of Microsoft is Windows and Office, which are sold only because of inertia and somewhat unlawful exclusion (bundling, formats, and so on).

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

8 Comments

  1. The Mad Hatter said,

    October 9, 2010 at 9:12 pm

    Gravatar

    I estimated that Microsoft would be in Chapter 11 within five years, about a year ago. I’m beginning to wonder if maybe it may occur faster.

  2. TemporalBeing said,

    October 11, 2010 at 1:15 pm

    Gravatar

    There are several key points in the life of a company all of which determine how long a company will last.

    1) The Founding – will the company survive the first 7 years.
    2) Growth – will the company recognize it needs to grow and do so in a balanaced way.

    The above are the most well known. Most start-ups do not make it past #1. Those that do struggle with #2 – either they try not to grow at all, or they try to grow too fast. If no growth (e.g. employees, etc.) then they will lose their customers as they won’t be able to meet demand. If too much growth then they overstretch themselves and lose customers because they are stretched too thin.

    If a company survives those two things then there is still a major challenge to overcome – the departure of the founders, which could happen any time even during those initial stages, though it usually ends up being a disaster for the company at those points. This is what Microsoft is struggling with. Since its founding Microsoft has had BillyG and co at the helm. Now everyone is retiring or moving on and the next generation must take over; yet Ballmer is still around trying to keep BillyG’s mentality – the old way – working. If Ballmer were cast aside, Microsoft might survive, though not likely – but it would have a better chance.

    However, Microsoft’s next biggest problem is that its too dependent on its two cash cows – Windows and Office – and the rest of the company requires the extra cash from those two in order to even have a semblance of profit. And the Window+Office franchises are in trouble with WinPhone7 losing out to Android and iOS in the embedded space (since Microsoft can’t envision anything other than their Windows Desktop), Windows Server losing to Linux, and Windows Desktop and Office facing battles due to ODF, security pressures, and people realizing there is a world other than the mediocre Microsoft out there.

    5 years may be a bit extreme, but either Microsoft will be a very small shadow of what it is today or it will be completely extinct between 10-20 years, though I guess I should say 8-18 years since I’ve been saying that for about 2-3 years now.

    There’s a reason Microsoft fought so vehemently to keep OOXML as the standard – without it no one needs Windows, or Microsoft.

  3. The Mad Hatter said,

    October 11, 2010 at 4:03 pm

    Gravatar

    TemporalBeing,

    You aren’t considering the network effect. When you consider it, four years is about right. But there are certain signs that it may happen quicker.

    Dr. Roy Schestowitz Reply:

    Speaking from what I see when I read the news, what’s important is that Microsoft is heading down. From Mini-Microsoft:

    Wow, what got in the corporate water for this week? Coming off the glow of last week’s Company Meeting Koolaid we first got hit by the Goldman Sachs downgrade hang-over, then, to channel Mr. Ballmer, “Boom-Boom-Boom!”

    * Health care changes on the way.
    * Live Labs gets shut down.
    * Technical Fellow Gary Flake, one of Microsoft few-TED stars, resigns.
    * Technical Fellow Brad Lovering leaves.
    * A glassdor.com survey that shows a lowly 50% approval rating for Mr. Ballmer.
    * IEB gets re-orged.
    * Massive gets shuttered (like we were all looking forward to billboard ads while blowing crap up in Xbox).
    * Adobe acquisition rumors.
    * Matt Rosoff leaves Directions on Microsoft.

    All this right on the eve of Windows Phone 7 being launched. Feels like one big… purge.

    I may take a bit of a break from blogging about Microsoft.

    The Mad Hatter Reply:

    That’s why I think that it may be three years rather than four. the company is still profitable, but it’s tearing itself apart internally, and totally unable to compete except in two narrow markets.

    Disaster – film at 11:00!

    TemporalBeing Reply:

    You also forget the inertia. It will take a bit more than 3 or 4 years for the full inertia to die off and for Microsoft to succumb to it. Think about how many places M$ has their fingers in, how many companies are essentially backing them, and how widespread their software is used. That won’t disappear over 3 or 4 years as people still have to find alternatives for big products – like SAP for example – things that run on Windows and have no alternative but are core business software. People will keep their subscriptions around until they get a replacement; but their licenses will dwindle as they cut back to having Microsoft products only where necessary, etc.

    There’s a lot riding on Microsoft, and it’ll take time to unwind.

    Now, I’d be glad to be wrong and see Microsoft drop a lot faster. But from a business point-of-view (as well as an IT rollout point-of-view) I just don’t see it happening.

    For example, even if a major corporation such as Hewlett Packard, IBM, Northrop Grumman, etc decided to make the switch away from Windows today – it would take them 3 or 4 years to complete the switch. Even if everything was in place – meaning all desktop and laptop systems could be switched over without side-effects – it would still take them at least 1 years just to migrate end-users, not to mention any retraining. Now add another 1 or 2 years per major application (e.g. SharePoint, LiveLink, NetMeeting, etc.) and the roll-out goes longer.

    There’s just some simple practicalities that will keep Microsoft around – even if it’s only a shadow of what it is now – for a lot longer than 3 or 4 years.

    The Mad Hatter Reply:

    You are mistaking the need of the customer, with the health of the company. It’s quite possible for Microsoft to die, before their customers have an exit strategy in place. The customers won’t like it, but really considering how badly Microsoft supports them right now, they probably wouldn’t be any better off.

    Oh, and you are also assuming that these large companies are stupid enough that they can’t see what’s coming, and make plans. They aren’t that stupid, and I suspect the changeover will happen so fast that the tech press will go into shock.

    Dr. Roy Schestowitz Reply:

    They could aways spin off Windows and/or Office as separate companies.

What Else is New


  1. Techrights Cited by European Politicians in Support of EPO Staff's Causes

    Benoît Battistelli's right-hand man is charaterised as suspected of corruption in European Parliament questions



  2. When the EPO Came Under Fire From the Netherlands and Before Systemic Corruption Was Revealed

    Questions that targeted the Dutch Minister of Justice amidst EPO abuses against staff and a shameful failure to enforce a court's decision



  3. Links 29/3/2015: Red Hat's Stock Soars, Kodi 14.2 Released

    Links for the day



  4. Speculations That Microsoft is About to Buy Cyanogen (or at Least Officially Partner) to Attack Google's Android/Linux, Replacing Everything With Microsoft

    Articles in the corporate media and some analysis from smaller media sites serve to highlight the role which Microsoft plays in Cyanogen



  5. Links 28/3/2015: FoundationDB FOSS Shut Down by Apple, European Commission Support for Free Software

    Links for the day



  6. Microsoft Keeps Pretending to be 'Open Source', Despite Relentless Assaults on Open Source

    Microsoft's charm offensives against Free/libre software are proving to be rather effective, despite them involving a gross distortion of facts and exploitation of corruptible elements in the corporate media



  7. Željko Topić and Ivan Šimonović, Two Residues of Ivo Sanader's Corrupt Regime, Seen as Indirectly Connected

    Further exploration of the remnants of Sanader's highly notorious record and those whom he had brought to power before he landed in jail



  8. Links 27/3/2015: Ubuntu 15.04 Second Beta, Dart 1.9

    Links for the day



  9. The EPO's Dutch Scandal Leaves Battistelli and His Cronies on the Run

    EPO management is making concessions and issues statements which admit defeat, allowing the staff union to continue its activities



  10. Microsoft Won't Let People Wipe (Off) Windows But Happily Wipes Android, Wipes Android Apps Through Cyanogen and Blackmailed 'Partners'

    Microsoft's obscene double-standards leave Android and Linux between a rock and a hard place



  11. Links 26/3/2015: GNOME 3.16 Officially Released

    Links for the day



  12. Links 25/3/2015: India Moving to Free Software

    Links for the day



  13. Another Reason to Boycott UEFI: Back Doors or Crackers

    UEFI makes computers more prone to infections, according to some security experts



  14. The EPO's Administrative Council is Under Increased Pressure to Rein in and to Finally Stop Benoît Battistelli

    The EPO's Administrative Council (AC) is about to have a meeting, so the Member States' delegations are urged to call for action



  15. IRC Proceedings: February 22nd - March 21st, 2015

    Many IRC logs



  16. The Latest Microsoft Attacks on GNU/Linux and Free/Libre Software

    Microsoft is still hiding behind the façade of 'love' whilst actively attacking GNU/Linux and Free software from many directions



  17. Attempts to Disrupt Android by Pushing Microsoft Software Into It (Using Patent Blackmail and Cyanogen)

    Microsoft's Android coup d'état is succeeding owing to public apathy and poor comprehension of what Microsoft really is up to, partly due to media misdirection



  18. Links 24/3/2015: WebKitGTK+ 2.8.0, Black Lab Linux 6.5

    Links for the day



  19. Concerns Over Željko Topić's Alleged Powerful Links in Croatian Diplomacy

    Rikard Frgačić explains the powerful connections acquired though Ivan Šimonović, who is himself connected to EPO Vice-President Željko Topić



  20. Benoît Battistelli's EPO Comes Under Fire From Prominent Figures Who Are Key EPO Stakeholders, Expect Battistelli to Resign 'in the Longer Term'

    The ‘reign of terror’ which is primarily attributed to Battistelli and his cronies may be about to end; the Luxembourg parliament approves the Unified Patent Court



  21. Benoît Battistelli's EPO is Under Attack From French Politicians Yet Again

    More EPO interventions -- this time from France -- target Benoît Battistelli over his abuses and take it up to Eurocrats for political actions



  22. Bribes and Extortion Help Turn Android (Linux-powered) Into 'Microsoft Android'

    A strategy involving harassment and bribes drives large Android players into Microsoft's arms (PRISM and lock-in), much to Google's (and users') detriment and beyond regulators' range of visibility



  23. Microsoft-connected Black Duck Software Created by Microsoft Marketing Man as an Anti-GPL Operation, Admits the Management

    Black Duck "was founded [on] the idea ... to keep GPL-licensed code out of corporate codebases entirely," according to a new report



  24. Links 23/3/2015: Linux 4.0 RC5, Kubuntu Celebrates Ten Years

    Links for the day



  25. Microsoft Admits Lying (or Deceiving) About the Cost of Vista 10

    After much hype in the press about Windows being 'free' it turns out that Microsoft just lied yet again, leaving that lingering perception that Windows is as inexpensive as GNU/Linux



  26. Politics of Blackmail at the EPO

    Comments serve to highlight the role of bribes (or contrariwise blackmail), as allegedly exercised by the current management of the European Patent Office



  27. Benoît Battistelli's EPO Comes Under Attack From the British

    A British MEP criticises Battistelli and the management of the European Patent Office (EPO) while Baroness Lucy Neville-Rolfe, UK Minister for Intellectual Property, gets closer to Battistelli in a tactless effort to improve relations



  28. The Royal Norwegian Department of Labour on the Right of European Patent Office (EPO) Workers to Strike

    The role of bureaucrats from Norway in defending (or not) the rights of EPO workers -- rights that the EPO's management is actively trying to deny and punish for



  29. Michael Silver Back to Acting as Gartner's Microsoft Agent, Promoting Vista 10 Based on False Promises

    Vista 10 in the headlines as its marketing propaganda zones in on false perceptions around cost, aided in part by longtime foes of GNU/Linux such as Gartner, especially its Microsoft-embedded elements (Michael Silver and co-workers)



  30. Despite Media Propaganda About Security, Microsoft Windows Remains the Least Secure Operating System, by Design

    Amid highly misleading security-centric reports that rely on Microsoft's bogus number of vulnerabilities (Microsoft already admitted hiding many of them) Techrights presents recent news about Windows 'security'


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts