EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

01.07.09

Hard Week for Microsoft, Next Week Likely Harder

Posted in Finance, Microsoft, Rumour at 9:05 pm by Dr. Roy Schestowitz

Stock Dives

In what seems like a worthy punishment, Intel and Microsoft both suffered a major blow at the sight of stagnant sales.

Shares of Microsoft Corp., the world’s largest software maker, sank Wednesday after chip maker Intel Corp. said fourth-quarter sales missed already lowered expectations.

Even a music Web site has published an article about the effect of Microsoft’s sharp drop in value.

Rap veteran E-40 is reviewing his stock market options after losing money from shares in software giant Microsoft and his fast food chain Fatburger.

Had it not been for massive buybacks, Microsoft’s shares would be worth a lot less and so would the value of the company (as opposed to its cash reserves that rapidly run out [1, 2, 3, 4, 5]).

Cessation and Deflation

According to numerous reports, Microsoft has poured cold water on expansion plans.

Microsoft has put on hold any interest in further expanding its operations in Seattle because of the deteriorating economy, a spokesman said Tuesday.

Divisions Shutdown

According to this report, Microsoft will soon shut down some gaming divisions.

Reuters and other outlets have reported recently that both Microsoft and Sony will be closing some of their major gaming divisions in early 2009.

Microsoft has already shut down Ensemble Studios, as we mentioned in [1, 2, 3, 4, 5]. Since XBox360 makes a loss per sale, Microsoft is now willing to go as far as suing a bankrupt company.

Microsoft Takes Legal Action Against Woolworths In The UK

It could be called the end of an era, as Woolworths in the United Kingdom has closed it’s doors forever to the public. Amidst the announcement that Woolworths would be shutting down due to bankruptcy, there were the typical “everything must go” sales where the store was practically giving their goods away. Well everyone in the land of the Union Jack must not have got the memo, and Woolworths was left with a ton of overstock, and coincidentally some of that stock happened to be Xbox 360′s. Now Microsoft isn’t just trying to take legal action against Woolworths, or Deliotte who is the administrator of the now defunct retailer, just to crash their party.

This is also covered in:

How low have they sunk? [Clarification 08/01/09: this is in reference to Woolworths]

Layoffs

Some days ago we cited many reports of looming layoffs. There are some newer reports:

Regulation, Finally?

Another interesting report today comes from Satyam, which turns out to be a financial fraud.

Satyam Chief Quits, Admits Faking Financial Results

[...]

In a resignation letter submitted to Satyam’s board, B. Ramalinga Raju said the company’s balance sheet carries inflated bank and cash balances, non-existent accrued interest, understated liabilities, and overstated credit amounts owed to the company.

Satyam and Microsoft have a tight alliance.

It was almost 10 years ago that Bill Parish wrote: “Microsoft’s perspective is best reflected by Bob Herbold, Chief Operating Officer, to whom the CFO reports. Bob very sincerely replied, “Bill, everyone is doing it.” My response was that Microsoft is a leader and that others are now seeking to emulate these fraudulent practices they have legitimized. Naturally Bob was not pleased by this perspective and that was our final conversation.”

It was around the same time that someone from inside Microsoft had already blown the whistle to highlight financial fraud [1, 2].

Nervous lady

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

46 Comments

  1. AlexH said,

    January 8, 2009 at 3:20 am

    Gravatar

    JFYI, suing a “bankrupt company” (actually, one that’s in administration – there’s a difference) is extremely common, for pretty obvious reasons.

  2. Roy Schestowitz said,

    January 8, 2009 at 3:42 am

    Gravatar

    Merciless nonetheless. There is a similar story about their bank.

  3. AlexH said,

    January 8, 2009 at 4:29 am

    Gravatar

    How on earth is it merciless? The business is being wound up!

  4. Roy Schestowitz said,

    January 8, 2009 at 4:42 am

    Gravatar

    And Microsoft behaves like a vulture, lurking for victims to peck at.

  5. AlexH said,

    January 8, 2009 at 4:46 am

    Gravatar

    Hang on. Microsoft are the ones owed millions, but EUK is the victim? How does that logic work?!

  6. Roy Schestowitz said,

    January 8, 2009 at 4:56 am

    Gravatar

    I doubt they can pay back. Should Red Hat also sue SCO for a frivolous lawsuit?

  7. AlexH said,

    January 8, 2009 at 5:04 am

    Gravatar

    Er, they’re not suing them for money, Roy.

  8. Roy Schestowitz said,

    January 8, 2009 at 5:17 am

    Gravatar

    Yes, of course.

  9. AlexH said,

    January 8, 2009 at 5:26 am

    Gravatar

    So what’s the actual problem?

  10. Roy Schestowitz said,

    January 8, 2009 at 5:30 am

    Gravatar

    It’s like this incident. It shows weakness.

  11. AlexH said,

    January 8, 2009 at 5:32 am

    Gravatar

    You think any other business which had millions of pounds of stock in someone else’s hands wouldn’t take legal action to get it back?

    I think you’re confusing weakness with basic business sense…

  12. Roy Schestowitz said,

    January 8, 2009 at 5:45 am

    Gravatar

    Although it’s a stretch, one could argue that Microsoft just wants lots of XBox360s out there, just as it wants lots of (counterfeited) Windows and Office out there. it’s production costs that make a difference though.

  13. AlexH said,

    January 8, 2009 at 5:52 am

    Gravatar

    Well, it obviously wants lots of Xbox360s out there – I’m not sure how that’s relevant though? The stock already exists, MS sent it to EUK and didn’t get paid for it. Now they want it back.

    Microsoft do tonnes of stuff worth criticising, but I just don’t see how this is anything different than normal business practice…

  14. Roy Schestowitz said,

    January 8, 2009 at 6:01 am

    Gravatar

    This was not the main criticism in this post, but you latched onto it. Reread the post to see things in context (it was about shutdown on XBox/gaming divisions)

  15. AlexH said,

    January 8, 2009 at 6:11 am

    Gravatar

    Well, most of the rest is just opinion/speculation.

    This is what I find difficult: sometimes, you justly criticise Microsoft for things they’ve done wrong. But othertimes, you criticise them when they’re doing things anyone else would do (this example, the CSS example, etc. etc.). Often, you criticise them for doing things that others are doing (e.g., the continual illogic about stock buy-backs).

    It makes it impossible to separate the valid criticism from the made-up “it’s bad because Microsoft are doing it”. We’re to believe that Microsoft have “sunk low” because they’re trying to recover debts? Give me a break.

  16. Roy Schestowitz said,

    January 8, 2009 at 6:29 am

    Gravatar

    That was Woolworths, not Microsoft.

  17. AlexH said,

    January 8, 2009 at 6:36 am

    Gravatar

    What was Woolworths?

  18. Roy Schestowitz said,

    January 8, 2009 at 6:43 am

    Gravatar

    Sinking.

  19. AlexH said,

    January 8, 2009 at 6:51 am

    Gravatar

    Perhaps you ought to correct the article then, because you’re talking about Microsoft and switch to Woolworths without noting it.

  20. Roy Schestowitz said,

    January 8, 2009 at 6:53 am

    Gravatar

    I’ve added the word “Woolworths”.

  21. AlexH said,

    January 8, 2009 at 6:55 am

    Gravatar

    Given you already called them “bankrupt” (which they’re not), why do we care how low Woolworths have sunk? Can you get any lower?

  22. Roy Schestowitz said,

    January 8, 2009 at 7:01 am

    Gravatar

    “Amidst the announcement that Woolworths would be shutting down due to bankruptcy,”

    http://www.talkxbox.com/article2981.html

    I cited it.

  23. AlexH said,

    January 8, 2009 at 7:03 am

    Gravatar

    “Bankrupt” is past tense. Woolworths are currently in adminstration.

    And anyway, it’s not Woolworths, it’s EUK, who are still trading and probably won’t go bankrupt (particularly since they’re part owned by the BBC).

  24. Roy Schestowitz said,

    January 8, 2009 at 7:06 am

    Gravatar

    Good for them.

  25. AlexH said,

    January 8, 2009 at 7:07 am

    Gravatar

    Bravo on rewriting it in ambiguous fashion again, anyway.

  26. Roy Schestowitz said,

    January 8, 2009 at 7:12 am

    Gravatar

    it wasn’t intended to be ambiguous.

  27. AlexH said,

    January 8, 2009 at 7:13 am

    Gravatar

    The simpler fix would be to cross out “they” and put “Woolworths”.

  28. Roy Schestowitz said,

    January 8, 2009 at 7:18 am

    Gravatar

    I didn’t want to use strikeout but rather just to clarify.

    Do you really have nothing better to comment on? I’ve posted some interesting things, but nitpicking appeals to you much more.

  29. AlexH said,

    January 8, 2009 at 7:28 am

    Gravatar

    No, it’s not the nitpicking, it’s watching the revisionism in action – how far you’ll bend to not admit a mistake.

  30. Roy Schestowitz said,

    January 8, 2009 at 7:34 am

    Gravatar

    If you are a perfectionist, use an encyclopedia or contribute to Wikipedia. If my source says that “…Amidst the announcement that Woolworths would be shutting down due to bankruptcy,” then I am allowed to innocently propagate an error every now and then.

    I write many posts here. Precision is hard when some of the articles from Google News are erroneous.

    If you have a nitpicking hobby, start a(nother) blog and express your point of view.

  31. AlexH said,

    January 8, 2009 at 7:35 am

    Gravatar

    You’re missing out the main point, which isn’t about your mistakes. It’s the made-up criticism that’s the big problem.

  32. Roy Schestowitz said,

    January 8, 2009 at 8:06 am

    Gravatar

    Of who? Woolworths? There is no criticism there; this part is pointing out that XBox360 is failing.

  33. AlexH said,

    January 8, 2009 at 8:16 am

    Gravatar

    The XBox360 isn’t failing in anyone’s eyes except yours, because you still repeat the “loss on every sale” meme, which as has been pointed out isn’t true any more.

    But I articulated my point many comments ago: you criticise Microsoft for many things. Some of them are entirely justifiable, and deserve wider notice. But then you pepper it with nonsense about CSS vendor extensions or (in this case) claiming back their own property, and start calling them names.

    By making bad points you drown out the good ones.

  34. Roy Schestowitz said,

    January 8, 2009 at 8:27 am

    Gravatar

    Ballmer himself calls XBox a “funny product” because they’ve lost billions on it. How do you define success? Number of adverts?

    The only winner is Nintendo, which Microsoft prefers to pretend does not exist.

  35. AlexH said,

    January 8, 2009 at 8:35 am

    Gravatar

    Not being #1 doesn’t make it unsuccessful. Having a huge installed base, a lot of subscribers, and a profitable business counts as “success” (and they are profitable now).

    You write Microsoft off at your peril. Seriously.

  36. Roy Schestowitz said,

    January 8, 2009 at 8:39 am

    Gravatar

    They are not profitable. They have lost about $7 billion. They are at the point now where they no longer lose even more money (that’s what they claim anyway), but it doesn’t make them “profitable”.

  37. AlexH said,

    January 8, 2009 at 8:50 am

    Gravatar

    Actually, it does. Profitability is over a financial period, not the entire lifetime of any given product. By your logic, Windows will be a profitable product basically forever.

  38. Roy Schestowitz said,

    January 8, 2009 at 8:54 am

    Gravatar

    You are attempting to spin this.

    Let me simplify this. Let us say that Microsoft’s balance-sheet for XBox looks like this:

    2000: -$1,000,000
    2001: -$1,500,000
    2002: -$1,400,000
    2003: -$2,000,000
    2004: -$2,000,000
    2005: -$2,500,000
    2006: -$4,000,000
    2007: -$7,500,000
    2008: -$7,200,000
    2009: ?? (2009 depression)

    Does that look like a successful and profitable business?

  39. AlexH said,

    January 8, 2009 at 8:56 am

    Gravatar

    As I just said, the concept of profitability is not a cumulative one for obvious reasons. No-one measures it like that.

    Call it spin if you like; it’s actually Finance 101. Go read how actual accountants do this, Roy.

  40. Roy Schestowitz said,

    January 8, 2009 at 9:07 am

    Gravatar

    ‘Pedancy’ with literal meanings does not change the fact it is a piker from a financial perspective,

  41. AlexH said,

    January 8, 2009 at 9:15 am

    Gravatar

    It’s not pedancy, Roy. You can’t redefine “profitability” to your own term just because it suits your argument.

    This is a classic example of what I’m saying. Microsoft (and, to a lesser extent, Sony) have massively subsidized their entry into this market. That’s fair enough criticism.

    But then you over-egg the pudding by basically padding it with fabrication. You repeat old memes which are no longer true, and meddle around with words.

  42. Roy Schestowitz said,

    January 8, 2009 at 9:17 am

    Gravatar

    Which memes? Be specific, please. Subsidy of entry does not mean that a product will not generate a loss throughout its lifetime.

  43. Dan O'Brian said,

    January 8, 2009 at 9:32 am

    Gravatar

    Roy: go out and get some real-world experience, please, before you further humiliate yourself.

    Actually, on second thought, it’s more funny if you don’t.

  44. Roy Schestowitz said,

    January 8, 2009 at 9:34 am

    Gravatar

    Dan,

    Your message lacks content.

  45. AlexH said,

    January 8, 2009 at 9:43 am

    Gravatar

    I’m sure he can make something up if you give him a few minutes.

  46. Dan O'Brian said,

    January 8, 2009 at 10:19 am

    Gravatar

    His faulty intepretation of the “Linux Heat Map” is a great example. His lack of understanding in this article is yet another.

    The list is endless.

What Else is New


  1. Links 28/3/2017: Linux 4.11-rc4 Kernel Released, Red Hat Surge on Sales

    Links for the day



  2. The Crook Goes to Brussels to Lie About the Unitary Patent (UPC)

    The person who spent years lying about the UPC and severely attacking critics (usually by blatantly lying about them) goes to Brussels for another nose extension



  3. The EPO's HR Roadmap Retrospective

    A look back at the terrible ‘accomplishments’ of the Jesper Kongstad-led Administrative Council, which still issues hogwash and face-saving lies, as one might expect from a protector of Battistelli that lies to national representatives and buries inconvenient topics



  4. Links 26/3/2017: Debian Project Leader Elections, SecureDrop and Alexandre Oliva FSF Winners

    Links for the day



  5. His Master's Voice, Jesper Kongstad, Blocks Discussion of Investigative and Disciplinary Procedures at the EPO

    The Chairman of the Administrative Council of the European Patent Organisation is actively preventing not just the dismissal of Battistelli but also discussion of Battistelli's abuses



  6. Heiko Maas and the State of Germany Viewed as Increasingly Complicit in EPO Scandals and Toxic UPC Agenda

    It is becoming hard if not impossible to interpret silence and inaction from Maas as a form of endorsement for everything the EPO has been doing, with the German delegates displaying more of that apathy which in itself constitutes a form of complicity



  7. With IP Kat Coverage of EPO Scandals Coming to an End (Officially), Techrights and The Register Remain to Cover New Developments

    One final post about the end of Merpel’s EPO coverage, which is unfortunate but understandable given the EPO’s track record attacking the media, including blogs like IP Kat, sites of patent stakeholders, and even so-called media partners



  8. Everyone, Including Patent Law Firms, Will Suffer From the Demise of the EPO

    Concerns about quality of patents granted by the EPO (EPs) are publicly raised by industry/EPO insiders, albeit in an anonymous fashion



  9. Yes, Battistelli's Ban on EPO Strikes (or Severe Limitation Thereof) is a Violation of Human Rights

    Battistelli has curtailed even the right to strike, yet anonymous cowards attempt to blame the staff (as in patent examiners) for not going out of their way to engage in 'unauthorised' strikes (entailing dismissal)



  10. Even the EPO's Administrative Council No Longer Trusts Its Chairman, Battistelli's 'Chinchilla' Jesper Kongstad

    Kongstad's protection of Battistelli, whom he is supposed to oversee, stretches to the point where national representatives (delegates) are being misinformed



  11. Thanks to Merpel, the World Knows EPO Scandals a Lot Better, But It's a Shame That IP Kat Helped UPC

    A look back at Merpel's final post about EPO scandals and the looming threat of the UPC, which UPC opportunists such as Bristows LLP still try hard to make a reality, exploiting bogus (hastily-granted) patents for endless litigation all around Europe



  12. EPO Critics Threatened by Self-Censorship, Comment Censorship, and a Growing Threat to Anonymity

    Putting in perspective the campaign for justice at the EPO, which to a large degree relies on whistleblowers and thus depends a great deal on freedom of the press, freedom of speech, and anonymity



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

    Links for the day



  14. 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



  15. 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



  16. 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



  17. 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



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

    Links for the day



  19. 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)



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

    Links for the day



  21. 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



  22. 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)



  23. “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



  24. 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)



  25. 22,000 Blog Posts

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



  26. 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)



  27. 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



  28. 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



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

    Links for the day



  30. 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


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