Comments on: Microsoft ready to lose more money online

Software maker says online market is too juicy to pass up, but any real gains in revenue won't be immediate. Profits are even further off.

[coryschulz]

If the market is expected to grow to like 80 Billion $ by 2012, and Google will probably controlling most of that, doesn't that make Google pretty frickin rich?

[Orion Blastar]

Microsoft is already losing money by Windows Vista being a flop, and the XBox 360 tanking as the Wii takes it over. Why not waste more money on advertising? They can just claim that after Bill Gates retired, that the company started to go downhill then. I am sure that IBM, Sony, TimeWarner, or even Compaq/HP would be able to buy out control of Microsoft after Microsoft stock tanks so badly when they cannot make a profit anymore, that Microsoft will be under new management and be able to be run better.

[Stariun]

Windows division made a profit and was better than a year ago as well as two years ago. Overall the company made a profit not a loss. They will need to invest in the Web side if they are to ever get anything from the place b'cos that market belongs to Google. There is no way Microsoft can snatch that from Google so they have to compete for second place.

[rcrusoe]

They've tried about everything possible to get people to use their online services, so how about paying people cash. Not cash back on purchases, cold hard cash. I'll use Live Search for $50 a month IF Microsoft signs a three year contract and agrees I will receive my check by the 5th day of each month. Of course, after Live Search fails to give me the correct information I'll have to use Google to get the results I need.

[Stariun]

First of all, Windows division made a profit not a loss which was higher than last year and two years ago as well. The company overall made a profit and not a loss or a break-even.

It is the online services they made a loss, some due to acquiring other small companies for that division. They will need to spend (Invest) more into that area of business if they are ever going to earn anything from there b'cos that market belongs to Google. Microsoft can't snatch that from Google so will have to fight for second place.

[Sumatra-Bosch]

You have to respect the enduring cynicism of MSFT. If the market can't be manipulated through contracts (like the bootloader exclusivity clause that stops PC manufacturers from shipping any box that boots Windows from booting other OSes out of the box), then of course the solution is to just bribe the greedy, blase customer base which doesn't care about quality and will put up with anything for $5 a year.

[Kwasiowusu]

@ Sumatra-Bosch , ?quality? huh? As determined by you? Don?t make me laugh. Consumers are free to buy whatever they want, or do their search wherever they want, according to their needs and wishes. You don?t tell anyone what to spend their money on. You didn?t work for them, are make their living for them. If consumers decide to buy Windows PC?s instead of Macs or buy Toyotas instead of BMW?s, its their choice.

[Kwasiowusu]

@ Orion Blastar , first of all both Vista and Office continue to make HUGE profits for Microsoft. Second of all, the 360 made a profits of over $400 last year. Third of all, Google?s earnings came in below expectations so much so that Google?s share price fell by 10% just yesterday. Also it might be worth pointing out that Microsoft makes more in profits than Google, and IBM combined, and has more money in the bank than Google , IBM, and HP combined, and a market cap bigger than Google or IBM or HP. If anyone is going to take over anyone, its going to be Microsoft doing the taking over.