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 25/3/2017: Maru OS 0.4, C++17 Complete

    Links for the day



  2. Judge and Justice Bashing in the United States, EPC Bashing at the EPO

    Enforcement of the law based on constitutional grounds and based on the European Patent Convention (EPC) in an age of retribution and insults -- sometimes even libel -- against judges



  3. Looking for EPO Nepotism? Forget About Jouve and Look Closely at Europatis Instead.

    Debates about the contract of Jouve with the EPO overlook the elephants in the room, which include companies that are established and run by former EPO chiefs and enjoy a relationship with the EPO



  4. Depressing EPO News: Attacks on Staff, Attacks on Life, Brain Drain, Patents on Life, Patent Trolls Come to Germany, and Spain Being Misled

    A roundup of the latest developments at the EPO combined with feedback from insiders, who are not tolerating their misguided and increasingly abusive management



  5. It Certainly Looks Like Microsoft is Already Siccing Its Patent Trolls, Including Intellectual Ventures, on Companies That Use Linux (Until They Pay 'Protection' Money)

    News about Intellectual Ventures and Finjan Holdings (Microsoft-funded patent trolls) reinforces our allegations -- not mere suspicions anymore -- that Microsoft would 'punish' companies that are not paying subscription fees (hosting) or royalties (patent tax) to Microsoft and are thus in some sense 'indebted' to Microsoft



  6. Links 24/3/2017: Microsoft Aggression, Eudyptula Challenge Status Report

    Links for the day



  7. Bernhard Rapkay, Former MEP and Rapporteur on Unitary Patent, Shoots Down UPC Hopes While UPC Hopefuls Recognise That Spain Isn't Interested Either

    Germany, the UK and Spain remain massive barriers to the UPC -- all this in spite of misleading reports and fake news which attempted to make politicians believe otherwise (for political leverage, by means of dirty lobbying contingent upon misinformation)



  8. Links 23/3/2017: Qt 5.9 Beta, Gluster Storage 3.2

    Links for the day



  9. The Administrative Council of the European Patent Organisation Has Just Buried an Innocent Judge That Battistelli Does Not Like

    An innocent judge (never proven guilty of anything, only publicly defamed with help from Team Battistelli and dubious 'intelligence' gathering) is one of the forgotten casualties of the latest meeting of the Administrative Council (AC), which has become growingly complicit rather than a mere bystander at a 'crime' scene



  10. Nepotism at the European Patent Office and Suspicious Absence of Tenders for Big Projects

    Carte blanche is a French term which now perfectly describes the symptoms encountered in the European Patent Office, more so once led by a lot of French people (Battistelli and his friends)



  11. “Terror” Patent Office Bemoans Terror, Spreads Lies

    Response to some of the latest utterances from the European Patent Office, where patently untruthful claims have rapidly become the norm



  12. China Seems to be Using Patents to Push Foreign Companies Out of China, in the Same Way It Infamously Uses Censorship

    Chinese patent policies are harming competition from abroad, e.g. Japan and the US, and US patent policy is being shaped by its higher courts, albeit not yet effectively combating the element that's destroying productive companies (besieged by patent trolls)



  13. 22,000 Blog Posts

    A special number is reached again, marking another milestone for the site



  14. The EPO is Lying to Its Own Staff About ILO and Endless (Over 2 Years) EPO Mistrials

    The creative writing skills of some spinners who work for Battistelli would have staff believe that all is fine and dandy at the EPO and ILO is dealing effectively with staff complaints about the EPO (even if several years too late)



  15. EPO’s Georg Weber Continues Horrifying Trend of EPO Promoting Software Patents in Defiance of Directive, EPC, and Common Sense

    The EPO's promotion of software patents, even out in the open, is an insult to the notion that the EPO is adhering to or is bound by the rules upon which it maintains its conditional monopoly



  16. Protectionism v Sharing: How the US Supreme Court Decides Patent Cases

    As the US Supreme Court (SCOTUS) starts delivering some decisions we take stock of what's to come regarding patents



  17. Links 22/3/2017: GNOME 3.24, Wine-Staging 2.4 Released

    Links for the day



  18. The Battistelli Regime, With Its Endless Scandals, Threatens to Crash the Unitary Patent (UPC), Stakeholders Concerned

    The disdain and the growing impatience have become a huge liability not just to Battistelli but to the European Patent Office (EPO) as a whole



  19. The Photos the EPO Absolutely Doesn't Want the Public to See: Battistelli is Building a Palace Using Stakeholders' Money

    The Office is scrambling to hide evidence of its out-of-control spendings, which will leave the EPO out of money when the backlog is eliminated by many erroneous grants (or rejections)



  20. In the US Patent System, Evolved Tricks for Bypassing Invalidations of Software Patents and Getting Them Granted by the USPTO

    A roundup of news about patents in the US and how the patent microcosm attempts to patent software in spite of Alice (high-impact SCOTUS decision from 2014)



  21. “Then They Came For Me—And There Was No One Left To Speak For Me.”

    The decreasing number of people who cover EPO scandals (partly due to fear, or Battistelli's notorious "reign of terror") and a cause for hope, as well as a call for help



  22. As Expected, the Patent Microcosm is Already Interfering, Lobbying and Influencing Supreme Court Justices

    The US Supreme Court (SCOTUS) is preparing to deliver some important decisions on cases with broad ramifications, e.g. for patent scope, and those who make money from patent feuds are attempting to alter the outcome (which would likely restrict patent scope even further, based on these Justices' track record)



  23. Intellectual Ventures -- Like Microsoft (Which It Came From) -- Spreads Patents to Manifest a Lot of Lawsuits

    That worrisome strategy which is passage of patents to active (legally-aggressive) trolls seems to be a commonality, seen across both Microsoft and its biggest ally among trolls, which Microsoft and Bill Gates helped create and still fund



  24. What the Patent Microcosm is Saying About the EPO and the UPC

    Response to 3 law firms and today's output from them, which serves to inform or misinform the European public at times of Big Lies and fog of (patent) war, revealing the true nature of 21st century asymmetric patent warfare and lobbying



  25. Tough Day for the EPO's Media/Press/PR Team, Trying 'Damage Control' After Important Techrights Publications

    In an effort to save face and regain a sense of legitimacy the EPO publishes various things belatedly, and only after Techrights made these things publicly known and widely discussed



  26. Links 21/3/2017: PyPy Releases, Radeon RX Vega, Eileen Evans at Linux Foundation

    Links for the day



  27. In IAM, Asian Courts That Deliver Justice Are “Unfriendly” and Asian Patent Trolls Are Desirable

    Rebuttal or response to the latest pieces from IAM, which keeps promoting a culture of litigation rather than sharing, collaboration, negotiation, and open innovation



  28. At EPO “I Have the Feeling That Lowering Quality is Part of a Concerted Plan.”

    Growing concern about patent quality at the EPO -- a subject which causes managers to get rather nervous -- is now an issue at the forefront



  29. EPO Reduces the World to Just Seven Nations to Bolster an Illusion of Growing 'Demand' for European Patents

    The unscientific -- if not antiscientific -- attitude of the European Patent Office (EPO) continues to show with the arrival of yet more misleading 'infographics' (disinfographics would be a more suitable term)



  30. Letter to Angela Merkel Expresses Concerns About Impact of EPO Scandals on Germany and Its Image

    Dr. Angela Merkel, arguably the most powerful woman in the world, is being warned about the consequences of Germany ignoring (and hence facilitating) the abuses of Benoît Battistelli


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