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. Besieged Benoît Battistelli Mimics 'Damage Control' Tactics of FIFA or Blatter as More Judges Start Getting Involved in EPO Scandals

    Rumours and a new rant from Battistelli reinforce suspicions that actions are being organised behind the scenes, possibly as part of an upcoming, high-level campaign to unseat/dethrone Battistelli, who has become a reputational disaster to the European Patent Office (EPO), much like Sepp Blatter at FIFA



  2. Several Political Parties Directly Challenge the European Patent Office for Ignoring the Law, Not Obeying Court Orders

    Politicians make it crystal clear that the EPO, despite its unique status, cannot just raise its nose at the rulings of courts of law, definitely not in Dutch territory where the EPO operates



  3. Even the Legal Community is Upset at Benoît Battistelli for the Damage He Did to the EPO

    A recent article from lawyers' media (in German) speaks of the great damage (or mess) left by its current president, who has become somewhat of a laughing stock and growingly synonymous with farcical trials even in the circles of stakeholders, not just his own staff



  4. EPO Union (SUEPO) Getting Busted: “More and More People are Joining the Union, but Fewer and Fewer People Dare to Take on Leading Positions There.”

    The union-busting actions taken by EPO management in collaboration with Control Risks (for weak accusations against staff representatives) and FTI Consulting (for 'damage control') as described in a recent article, in the words of SUEPO lawyer Liesbeth Zegveld



  5. Microsoft's Copyrights- and Patents-Based Attacks on GNU/Linux Carry on

    The SCO case is still going on and Microsoft has just signed a patent deal with GoPro over its FOSS-based software, relating to “certain file storage and other system technologies”



  6. The EPO's Benoît Battistelli is the Dictator Who Can No Longer Dictate Like He Used to

    The European Patent Office's mechanism of oversight is starting to work just a little because, based on a new report from Juve, Battistelli is now reluctant to make proposals that would prove unpopular among delegates



  7. La Más Detallada Explicación (hasta ahora) de ¿Qué esta mal con la OEP?

    La insistencia de la OEP que permanece arriba de la ley no sólo est bajo fuego en los medios pero también esta siendo desafiada basado en personas familiares con la aplicabilidad de la ley a organizaciones internacionales.



  8. Links 8/2/2016: Vista 10 Nags Help GNU/Linux, Nautilus Updated

    Links for the day



  9. The European Patent Office “is Acting as Though the Law Does Not Apply to It.”

    An article from Nieuwsuur which provides the words of Liesbeth Zegveld (for SUEPO) and Guillaume Minnoye (for the European Patent Office), reaffirming the EPO's bizarre notion that it is above the law, even in the face of human rights violations and a court ruling against the EPO



  10. Microsoft-Connected FRAND Lobbying (Software Patents Against Free/Open Source Software) in Brussels

    Anti-Free/Open Source software (FOSS) talking points and FRAND (anti-FOSS) lobbying groups in Brussels as seen by proponents of FRAND, who also worked for Microsoft



  11. Latest Propaganda From the EPO's Management an Effort to Make the EPO the Tool of Megacorporations

    A quick roundup of some of the latest spin and paid-for (bought) coverage that helps introduce a distorted patent system whose beneficiaries are not European (or even people)



  12. 'Aversion to Change' Propaganda From the EPO Echoes or Parrots Lenin and Stalin

    The out-of-control EPO management is trying to fool the media by blaming staff representatives for getting fired, simply because they stood up to a highly abusive and megalomaniacal dictator



  13. The Gates Foundation Subjected to Criticism, But Over a Decade Too Late

    Reckoning and accepting the fact that even some in the media now openly speak about Bill Gates' corrupting influence in everything, including politics



  14. Links 8/2/2016: Zenwalk 8.0 Beta 2, Q4OS 1.4.7

    Links for the day



  15. SIPO (China's Patent Office) Taken Over by Patent Maximalists

    A look at China's race to the bottom (decline in quality) when it comes to patents, assuming quite wrongly that quantity is more important than quality and severe penalties for perceived infringement will spur innovation



  16. The Alice Case Continues to Smash Software Patents (This Time OpenTV's); Will the EPO Ever Pay Attention?

    The potency or the grip of software patents in the United States is quickly eroding, but the EPO continues to act as though software patents are legitimate



  17. EPO Staff Responds to Team Battistelli's Expansion to Include French Economic Propagandist on the Payroll

    With strings attached (like string puppets of Battistelli in various units including the Investigative Unit), can the new Chief Economist, who is French and paid by Battistelli, ever be trusted?



  18. UPC: To Understand Who Would Benefit From It Just Look at Who's Promoting It (Like TPP)

    The UPC, which is designed to aid patent trolls and aggressors (and their lawyers), is still being advanced by the EPO and some misinformed (but loyal to these former groups) politicians



  19. Trolls Molestos: Rovi (del famoso Angry Birds) Ayuda al Más Largo Troll de Patentes de Microsoft Intellectual Ventures (Corregido)

    Alguna vez conocido como hacedor de juegos y más tarde como vigilancia en masa en jugadores, Rovi ahora se ESTA ALIANDO CON EL MÁS GRANDE TROLL DE PATENTES



  20. Estadísticas de Invalidación de Patentes y Costos de Litigación de Patentes (incluso si son falsas) Muestran que la Esfera de Patentes y los Estándares de Examinación son un Probleman, No Sólo en Los Estados Unidos

    Demasiadas falsas patentes que no deberían haber sido otorgadas en primer lugar y fraudulentes jucios de patentes que terminan en favor del acusado sirve para mostrar el costo externo (o externalidad) cuando set trata de un bajisímo sistema de patentes que se esfuerza en otorgar muchas patentes irrespectivamente de su mérito.



  21. The 'Offenses' of EPO Staff Representatives Boil Down to Truth-Telling

    Dutch television examined the documents of the mock 'trials' against SUEPO leaders and concluded that whistle-blowing (i.e. exposing abuses by EPO management), not misconduct, is the reason for overzealous dismissals



  22. Rumours About Dismissal of Benoît Battistelli and New Letter From Union Syndicale Federale Blasting Battistelli's Behaviour

    hings have been heating up since the dismissal of staff representatives at the European Patent Office (EPO) and some even spread rumours about withdrawal/dismissal of the EPO's President



  23. VirnetX Case Against Apple Shows Not the Problem With Patent Trolls But With Software Patents

    What the media really ought to be talking about after the high-profile VirnetX case, rather than obsess about the status of Apple or patent trolls in the Eastern District of Texas



  24. Diápositivas de Nueva Charla Explican la Connección Entre la Corte De Patentes Unitarias (UPC) y Patentes de Software

    Benjamín Henrion habló el pasado Domingo acerca de las patentes de software europeas -una presentación que habla de la Corte Unitaria de Patentes, por la que la OEP aboga sin cesar y que es lo que significa para las patentes de software.



  25. Las Políticas de Microsoft Alienan Incluso a los Hinchas Más Acérrimos de Microsoft, Incluyendo Pro-Microsoft Web Sites

    El agresivo comportamiento de Microsoft y su BAJA CALIDAD DE PRODUCTOS dejan algunos de sus últimos restos de ´hinchas´ descorazonados y molestos.



  26. Links 6/2/2016: CoreOS Rocket 1.0, Scientific Linux 7.2

    Links for the day



  27. Maybe It's Time for Class Action Lawsuits Against Microsoft for Forced Vista 10 'Upgrades', Which Were Definitely No Accident

    The sheer arrogance of Microsoft, which silently changes the operating system on people's computers (without their consent), makes lawsuits imperative, not just a possibility



  28. Readers' Article: A Strange Conspiracy of Silence in the German Media (Part II)

    Željko Topić's allegedly dark background, which includes a suicide, a retreat of potential witnesses, German funds in Topić's private bank account and several more interesting bits



  29. Links 5/2/2016: Wine 1.9.3, Slackware 14.2 Beta 2

    Links for the day



  30. Links 4/2/2016: Red Hat Upgraded, Ubuntu Tablet

    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