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. Links 24/3/2019: Microsoft Does Not Change; Lots of FOSS Leftovers

    Links for the day



  2. Just Published: Irrational Ignorance at the Patent Office

    Iancu and his fellow Trump-appointed "swamp" at the USPTO are urged to consult academics rather than law firms in order to improve patent quality in the United States



  3. Microsoft Paid the Open Source Initiative. Now (a Year Later) Microsoft is in the Board of the Open Source Initiative.

    The progression of Microsoft entryism in FOSS-centric institutions (while buying key "assets" such as GitHub) isn't indicative of FOSS "winning" but of FOSS being infiltrated (to be undermined)



  4. Jim Zemlin's Linux Foundation Still Does Not Care About Linux Desktops

    We are saddened to see that the largest body associated with Linux (the kernel and more) is not really eager to see GNU/Linux success; it's mostly concerned about its bottom line (about $100,000,000 per annum)



  5. Links 23/3/2019: Falkon 3.1.0 and Tails 3.13.1

    Links for the day



  6. The Unified Patent Court is Dead, But Doubts Remain Over the EPO's Appeal Boards' Ability to Rule Independently Against Patents on Nature and Code

    Patents used to cover physical inventions (such as engines); nowadays this just isn't the case anymore and judges who can clarify these questions lack the freedom to think outside the box (and disobey patent maximalists' dogma)



  7. Patent Law Firms Still Desperate to Find New Ways to Resurrect Dead Software Patents in the United States

    There's no rebound and no profound changes that favour software patents; in fact, judging by caselaw, there's nothing even remotely like that



  8. Links 22/3/2019: Libinput 1.13 RC2 and Facebook's Latest Security Scandal

    Links for the day



  9. Why the UK Intellectual Property Office (UK-IPO) Cannot Ignore Judges, Whereas the EPO Can (and Does)

    The European Patent Convention (EPC) ceased to matter, judges' interpretation of it no longer matters either; the EPO exploits this to grant hundreds of thousands of dodgy software patents, then trumpet "growth"



  10. The European Patent Office Needs to Put Lives Before Profits

    Patents that pertain to health have always posed an ethical dilemma; the EPO apparently tackled this dilemma by altogether ignoring the rights and needs of patients (in favour of large corporations that benefit financially from poor people's mortality)



  11. “Criminal Organisation”

    Brazil's ex-President, Temer, is arrested (like other former presidents of Brazil); will the EPO's ex-President Battistelli ever be arrested (now that he lacks diplomatic immunity and hides at CEIPI)?



  12. Links 21/3/2019: Wayland 1.17.0, Samba 4.10.0, OpenShot 2.4.4 and Zorin Beta

    Links for the day



  13. Team UPC (Unitary Patent) is a Headless Chicken

    Team UPC's propaganda about the Unified Patent Court (UPC) has become so ridiculous that the pertinent firms do not wish to be identified



  14. António Campinos Makes Up Claims About Patent Quality, Only to be Rebutted by Examiners, Union (Anyone But the 'Puff Pieces' Industry)

    Battistelli's propagandistic style and self-serving 'studies' carry on; the notion of patent quality has been totally discarded and is nowadays lied about as facts get 'manufactured', then disseminated internally and externally



  15. Links 20/3/2019: Google Announces ‘Stadia’, Tails 3.13

    Links for the day



  16. CEN and CENELEC Agreement With the EPO Shows That It's Definitely the European Commission's 'Department'

    With headlines such as “EPO to collaborate on raising SEP awareness” it is clear to see that the Office lacks impartiality and the European Commission cannot pretend that the EPO is “dafür bin ich nicht zuständig” or “da kenne ich mich nicht aus”



  17. Decisions Made Inside the European Patent Organisation (EPO) Lack Credibility Because Examiners and Judges Lack Independence

    The lawless, merciless, Mafia-like culture left by Battistelli continues to haunt judges and examiners; how can one ever trust the Office (or the Organisation at large) to deliver true justice in adherence or compliance with the EPC?



  18. Team UPC Buries Its Credibility Deeper in the Grave

    The three Frenchmen at the top do not mention the UPC anymore; but those who promote it for a living (because they gambled on leveraging it for litigation galore) aren't giving up and in the process they perpetuate falsehoods



  19. The EPO Has Sadly Taken a Side and It's the Patent Trolls' Side

    Abandoning the whole rationale behind patents, the Office now led for almost a year by António Campinos prioritises neither science nor technology; it's all about granting as many patents (European monopolies) as possible for legal activity (applications, litigation and so on)



  20. Where the USPTO Stands on the Subject of Abstract Software Patents

    Not much is changing as we approach Easter and software patents are still fool's gold in the United States, no matter if they get granted or not



  21. Links 19/3/2019: Jetson/JetBot, Linux 5.0.3, Kodi Foundation Joins The Linux Foundation, and Firefox 66

    Links for the day



  22. Links 18/3/2019: Solus 4, Linux 5.1 RC1, Mesa 18.3.5, OSI Individual Member Election Won by Microsoft

    Links for the day



  23. Microsoft and Its Patent Trolls Continue Their Patent War, Including the War on Linux

    Microsoft is still preying on GNU/Linux using patents, notably software patents; it wants billions of dollars served on a silver platter in spite of claims that it reached a “truce” by joining the Open Invention Network and joining the LOT Network



  24. Director Iancu Generally Viewed as a Lapdog of Patent Trolls

    As Director of the Office, Mr. Iancu, a Trump appointee, not only fails to curb patent trolls; he actively defends them and he lowers barriers in order to better equip them with bogus patents that courts would reject (if the targets of extortion could afford a day in court)



  25. Links 17/3/2019: Google Console and IBM-Red Hat Merger Delay?

    Links for the day



  26. To Team UPC the Unified Patent Court (UPC) Has Become a Joke and the European Patent Office (EPO) Never Mentions It Anymore

    The EPO's frantic rally to the very bottom of patent quality may be celebrated by obedient media and patent law firms; to people who actually produce innovative things, however, this should be a worrisome trend and thankfully courts are getting in the way of this nefarious agenda; one of these courts is the FCC in Germany



  27. Links 16/3/2019: Knoppix Release and SUSE Independence

    Links for the day



  28. Stopping António Campinos and His Software Patents Agenda (Not Legal in Europe) Would Require Independent Courts

    Software patents continue to be granted (new tricks, loopholes and buzzwords) and judges who can put an end to that are being actively assaulted by those who aren't supposed to have any authority whatsoever over them (for decisions to be impartially delivered)



  29. The Linux Foundation Needs to Speak Out Against Microsoft's Ongoing (Continued) Patent Shakedown of OEMs That Ship Linux

    Zemlin actively thanks Microsoft while taking Microsoft money; he meanwhile ignores how Microsoft viciously attacks Linux using patents, revealing the degree to which his foundation, the “Linux Foundation” (not about Linux anymore, better described as Zemlin’s PAC), has been compromised



  30. Links 15/3/2019: Linux 5.0.2, Sublime Text 3.2

    Links for the day


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