Google gains share again, should Microsoft give up?

Google has been gaining market share consistently since they day they opened up shop, and it doesn't appear it will be slowing down any time soon -- in July they were up to 62%. Yahoo and Microsoft have been trying their hardest, spending hundreds of millions of dollars each year to try and change users' minds. Unfortunately for them, their money has so far been wasted considering they are consistently losing ground to Google -- a company that really doesn't even have to try.

So, 5 years down the road, what happens once Google's market share moves from 60 some to 90 some? Does any other current search engine have a chance? I can see the battle ground moving off US soil to another country where there may be an opportunity for success. I sometimes feel that Microsoft and Yahoo should probably cut their losses with search, and start thinking outside the box. Leave "Google Killers" to start-ups who at least have a new brand going for them.

I often ask myself why Microsoft is so intent on trying to compete with Google anyways. Shouldn't they be focusing their efforts on things they have proven they can do well, like creating excellent operating systems that get the job done in homes and in the enterprise? If it's the big advertising bucks spurring their efforts to try and take on Google, they are trying too hard. Why not figure out how to work relevant advertising (that users will welcome) into the operating system in a way that isn't intrusive, or a privacy problem, then give the operating system away for free.

I make it sound too easy, but anything can be figured out. Where there is a problem, there is usually a solution, and I think Microsoft would be spending their money more wisely figuring that out than trying to topple Google. What do you think about the future of Google's market share, and what it means for the companies trying to compete?