Newsmaker: Microsoft: We're in 'fighting shape'

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But we do need to simplify the experiences. There's probably more we need to do with our partners in terms of the way things get presented, and peripherals get presented, and packaged and presented in stores.

You started that with PlaysForSure?
Ballmer: We started it. We've got a lot of work to do.

One of the areas that you've talked about a lot in the consumer side is Xbox, and really there is this kind of window of opportunity. You guys are out with the next-generation console; Sony is not going to be out for a while. The availability at launch wasn't necessarily what you wanted. What are you guys going to do, and what would you like to accomplish by the time Sony gets to the market?
Gates: Our availability was just great.

Ballmer: It's pretty good. We knew we were going to be short.

Gates: We are shipping faster than any videogame has ever shipped. The thing is just hot, and I spent over 100 hours playing with it over Christmas. It's fantastic. And it really draws you in because you get these awards, you meet people, you get into the contests. It's something.

Ballmer: It's accomplishing a lot of what we'd hoped to in terms of appealing to a broader demographic. We've got to make a bunch. We knew we would be in short supply, but we also knew we could build a lot. We've built a lot. We've sold a lot. We've got to keep building more, and as Bill says, we're on target for our roughly 5 million by the end of the financial year. I feel like everything is great guns on Xbox. I mean, yeah, every one we can make we're going to ship, but everything is great guns. I couldn't have laid out a much better place to be than where we are today.

How big a dent do you think you've put in Sony? ?
Gates: We know what it's like to go second. We've tried that. And that was last time. Last time was very different in that, if I bought a PS2 and you bought an Xbox, we'd go to your house and play PS2, we'd go to my house and play Xbox.

So it works, when it becomes this "Live" thing, that you're accumulating your achievements and all that, and anybody can play with anybody. (If) I bought an Xbox, when you go to buy a machine--whether it's 2006, 2007--if you want to play with me in Live, which is what the thing is all about, then you need to buy that same machine.

So we've got that leading-edge group, most of whom won't buy two machines--some will, but they're telling their friends, look, connect up to me, and that's done with Xbox. So going first was more important in this generation than in any generation there has ever been.

Ballmer: The Live advantage is...there's no Sony announcement for a Live equivalent type deal. We had, if anything, a cost disadvantage last generation. If anything, depending on what they do with (Blu-Ray disc support), we're not going to have a cost disadvantage this time.

Gates: Have you seen the basketball game? I think it's great.

Ballmer: Oh, have I seen it? Shall we say it's quite hot in the Ballmer house. My son comes up to me the other night, "Dad, the guys start perspiring in a few minutes...just the way they're supposed to; that is really awesome, Dad." I've got three boys, 13 on down, and unlike Xbox 1, my wife thinks it's a good addition to the house.  

More Newsmakers

[rcrusoe]

Because they don't take American Express

IMO, anytime someone mentions their competition it says to me
that they consider them a serious competitor.

Sounds like Open Office and Google are keeping folks awake at
night in Redmond.

[David Arbogast]

WHAT

>>anytime someone mentions their competition it says to me that they consider them a serious competitor

Did you just mention Microsoft?? Then you must consider them to be serious competition! Watch out!

Hey... when an interviewer asks questions, you answer. Just how much competition exists for Office? What are they going to compare themselves to? WordPerfect 5.2 for DOS ?!?

I think it was an informative interview. They are obviously jazzed about XBox 360 and it sounds like they've put in far more effort developing a plan for competing with Google than most people on this site would ever give them credit for. Good questions. Good answers. Thanks, CNet.

[Jake Leone]

Microsoft bows to Chai knees censors, joins Chai knees in Murder Inc.

This is article is all about what Microsoft says its agenda is. Microsoft's real agenda is money, and they don't care how many people have to die in order to get that money.

Microsoft recently destroyed a blogger's site (completely deleted and banished) because he had useful information about corruption in Chai nah. They did this because the Chai knees state is worth billions of $$$ to Microsoft.

The only reason why Microsoft exists is because people have given their lives to preserve the Constitution of the United States.

But the hedonists at the top of Microsoft don't care about human rights.

Frankly, those who deny FRED OHM to others deserve it not for themselves. Banish these hedonists to Chai nah.

Microsoft is actively destroying Fred Ohm of the press in Chai nah. Microsoft is actively allowing unchecked corruption to continue, and loving it. The Chai Knees government kills and imprisons all who point out any governmental corruption.

There is no check an balance in Chai Knees government. The fat cats at the top can do anything they want.

Microsoft is now a full partner in Murder Incorporated.

[Jonathan]

Actually from where Im sitting...

Microsoft is about as weak as they have ever been. Lets see. Off the top of me head...

-360's launch was hardly spectacular with key titles still being held up along with, depending on who you talk to, massive, or not so, hardware issues.

-More Windows XP security holes that are hitting mainstream TV news.

-Next generation OS that is "on track" for a fall release. Never mind the fact that MS can't make up their mind if they really are going to move their graphics display subsystem out of the kernel into user mode. No one can get a straight answer from them for an OS that should be going gold in aprox 7 months.

-All the while a fairly large number of users and companies haven't upgraded from 9x or 2K to MS's flagship XP OS 4 years after its shipped.

I'm sure there are more complaints and criticisms, and no doubt some fanboi is going to pick apart my critical views of the company but the simple fact is Microsoft is putting on a brave face right now. (Like they were expected to do anything else.) Microsoft is taking some body blows in just about every department. Frankly even with a spectacular launch of Vista, I dont believe it for a second because of the nature of this overhaul, I think they are in for some serious challenges in the next couple years and frankly I don't believe MS is nimble enough nor "wise" enough to counter those challenges. Microsoft has crafted Vista around todays challenges. Microsoft is incapable of seeing 5 steps infront of them. Look at how Mr. Gates discovered the internet at the 11th hour for Windows 95. Even though Vista is expected to be highly modular and more nimble when it comes to underlying upgrades I really dont expect it to cope with future challenges. Frankly Microsoft is stuck, for lack of a better term, with Vista for the foreseeable future and as competitors such as Google, Linux, Apple, Yahoo, etc start to expand into new areas I dont think Microsoft is going to be able to adabt in a timely manner. Time will tell though.

[FisherKingKQJ]

prepaid

That reminds me,they didn't mention the prepaid and local this time. I heard Diners Card and Amex are the next Visa and MasterCard. :) :) :)

[Blito]

Meanwhile, after a busy day crushing Chinese dissidents...

I think Bill Gates should take on more of a consulting role for the rest of the industry. he's too industrial. This way he won't be trying to do everything himself. He is very smart and likable obviously, and with a great business foundation in beautiful Washington State where allot of the industry is.
They still dont seem to be in the online mode ala Google. Online advertising is better and MS still wants to charge upfront even after they said they were moving into the Live era.

Basically the best software model today is SOA (Sevices Orientated Architecture) and they aint using it. Hello???