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. PatentShield is Not the Solution and It Won't Protect Google/Android From Patent Trolls Like Microsoft's

    A new initiative called "PatentShield" is launched, but it's yet another one of those many initiatives (Peer-to-Patent and the likes of it, LOT Network, OIN, PAX etc.) that serve to distract from the real and much simpler solutions



  2. Patent Quality Crisis and Unprecedented Trouble at the European Patent Office (EPO) Negatively Affect Legitimate Companies in the US As Well

    The granting en masse of questionable patents by the EPO (patent maximalism) is becoming a liability and growing risk to companies which operate not only in Europe but also elsewhere



  3. Blog 'Takeovers' by Bristows and Then Censorship: Now This Firm Lies About the Unitary Patent (UPC) and Then Deletes Comments That Point Out the Errors

    Not only are Bristows employees grabbing the mic in various high-profile IP blogs for the purpose of UPC promotion (by distortion of facts); they also actively suppress critics of the UPC



  4. Links 25/4/2017: Kali Linux 2017.1 Released, NSA Back Doors in Windows Cause Chaos

    Links for the day



  5. Astoundingly, IP Kat Has Become a Leading Source of UPC and Battistelli Propaganda

    The pro-UPC outlets, which enjoy EPO budget (i.e. stakeholders' money), are becoming mere amplifiers of Benoît Battistelli and his right-hand UPC woman Margot Fröhlinger, irrespective of actual facts



  6. EPO Fiasco to be Discussed in German Local Authority (Bavarian Parliament) Some Time Today as the Institution Continues Its Avoidable Collapse

    Conflict between management and staff -- a result of truly destructive strategies and violations of the law by Benoît Battistelli -- continues to escalate and threatens to altogether dismantle the European Patent Office (EPO)



  7. In the US and Elsewhere, Qualcomm's Software Patents Are a Significant Tax Everyone Must Pay

    The state of the mobile market when companies such as Qualcomm, which don't really produce anything, take a large piece of the revenue pie



  8. In South Asia, Old Myths to Promote Patent Maximalism, Courtesy of the Patent Microcosm

    The latest example of software patents advocacy and patent 'parades' in India, as well as something from IPOS in Singapore



  9. Links 24/4/2017: Linux 4.11 RC8, MPV 0.25

    Links for the day



  10. Why Authorities in the Netherlands Need to Strip the EPO of Immunity and Investigate Fire Safety Violations

    How intimidation and crackdown on the staff representatives at the EPO may have led to lack of awareness (and action) about lack of compliance with fire safety standards



  11. Insensitivity at the EPO’s Management – Part IX: Testament to the Fear of an Autocratic Regime

    A return to the crucial observation and a reminder of the fact that at the EPO it takes great courage to say the truth nowadays



  12. For the Fordham Echo Chamber (Patent Maximalism), Judges From the EPO Boards of Appeal Are Not Worth Entertaining

    In an event steered if not stuffed by patent radicals such as Bristows and Microsoft (abusive, serial litigators) there are no balanced panels or even reasonable discussions



  13. EPO Staff Representatives Fired Using “Disciplinary Committee That Was Improperly Composed” as Per ILO's Decision

    The Board of the Administrative Council at European Patent Organisation is being informed of the union-busting activities of Battistelli -- activities that are both illegal (as per national and international standards) and are detrimental to the Organisation



  14. Links 23/4/2017: End of arkOS, Collabora Office 5.3 Released

    Links for the day



  15. Intellectual Discovery and Microsoft Feed Patent Trolls Like Intellectual Ventures Which Then Strategically Attack Rivals

    Like a swarm of blood-sucking bats, patent trolls prey on affluent companies that derive their wealth from GNU/Linux and freedom-respecting software (Free/libre software)



  16. The European Patent Office Has Just Killed a Cat (or Skinned a 'Kat')

    The EPO’s attack on the media, including us, resulted in a stream of misinformation and puff pieces about the EPO and UPC, putting at risk not just European democracy but also corrupting the European press



  17. Yann Ménière Resorts to Buzzwords to Recklessly Promote Floods of Patents, Dooming the EPO Amid Decline in Patent Applications

    Battistelli's French Chief Economist is not much of an economist but a patent maximalist toeing the party line of Monsieur Battistelli (lots of easy grants and litigation galore, for UPC hopefuls)



  18. Even Patent Bullies Like Microsoft and Facebook Find the Patent Trial and Appeal Board (PTAB) Useful

    Not just companies accused of patent infringement need the PTAB but also frequent accusers with deep pockets need the PTAB, based on some new figures and new developments



  19. Links 21/4/2017: Qt Creator 4.2.2, ROSA Desktop Fresh R9

    Links for the day



  20. At the EPO, Seeding of Puff Piece in the Press/Academia Sometimes Transparent Enough to View

    The EPO‘s PR team likes to 'spam' journalists and others (for PR) and sometimes does this publicly, as the tweets below show — a desperate recruitment and reputation laundering drive



  21. Affordable and Sophisticated Mobile Devices Are Kept Away by Patent Trolls and Aggressors That Tax Everything

    The war against commoditisation of mobile computing has turned a potentially thriving market with fast innovation rates into a war zone full of patent trolls (sometimes suing at the behest of large companies that hand them patents for this purpose)



  22. In Spite of Lobbying and Endless Attempts by the Patent Microcosm, US Supreme Court Won't Consider Any Software Patent Cases Anymore (in the Foreseeable Future)

    Lobbyists of software patents, i.e. proponents of endless litigation and patent trolls, are attempting to convince the US Supreme Court (SCOTUS) to have another look at abstract patents and reconsider its position on cases like Alice Corp. v CLS Bank International



  23. Expect Team UPC to Remain in Deep Denial About the Unitary Patent/Unified Court (UPC) Having No Prospects

    The prevailing denial that the UPC is effectively dead, courtesy of sites and blogs whose writers stood to profit from the UPC



  24. EPO in 2017: Erroneously Grant a Lot of Patents in Bulk or Get Sacked

    Quality of patent examination is being abandoned at the EPO and those who disobey or refuse to play along are being fired (or asked to resign to avoid forced resignations which would stain their record)



  25. Links 21/4/2017: System76 Entering Phase Three, KDE Applications 17.04, Elive 2.9.0 Beta

    Links for the day



  26. Bristows-Run IP Kat Continues to Spread Lies to Promote the Unitary Patent (UPC) and Advance the EPO Management's Agenda

    An eclectic response to some of the misleading if not villainous responses to the UPC's death knell in the UK, as well as other noteworthy observations about think tanks and misinformation whose purpose is to warp the patent system so that it serves law firms, for the most part at the expense of science and technology



  27. Links 20/4/2017: Tor Browser 6.5.2, PacketFence 7.0, New Firefox and Chrome

    Links for the day



  28. Patents on Business Methods and Software Are Collapsing, But the Patent Microcosm is Working Hard to Change That

    The never-ending battle over patent law, where those who are in the business of patents push for endless patenting, is still ongoing and resistance/opposition is needed from those who actually produce things (other than litigation) or else they will be perpetually taxed by parasites



  29. IAM, the Patent Trolls' Voice, is Trying to Deny There is a Growing Trolling Problem in Europe

    IAM Media (the EPO's and trolls' mouthpiece) continues a rather disturbing pattern of propaganda dressed up as "news", promoting the agenda of parasites who drain the economy by extortion of legitimate (producing) companies



  30. The Patent Microcosm Keeps Attacking Every Patent Office/System That is Doing the Right Thing

    Patent 'radicals' and 'extremists' -- those to whom patents are needed solely for the purpose of profit from bureaucracy -- fight hard against patent quality and in the process they harm everyone, including individual customers


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