In the first time in their history as a public company, Microsoft posted a year-over-year loss. Sure, the economy is easy enough to blame, but is that the real problem?
Each month, new statistics about search engine traffic usage are published by companies like Comscore, and it never fails that Microsoft loses ground, and Google gains. It's true that search is a small part of Microsoft's strategy, but when you look at the amount of money they are throwing away to try and compete ($1 Billion per year), it's not hard to see that there are several eggs in that basket.
When it's not working, you have to try something else. The best thing Microsoft can do at this point is seriously rethink their strategy, and make some tough decisions.
The first thing Microsoft needs to do is re-allocate most of the money they are spending on search into mobile. It's easy to see that Apple and Google are eating away at Microsoft's relatively good position in the wireless industry, and that needs to stop if they are going to have any chance.
If it's ad revenue they are after, there may be some opportunities to incorporate relevant ads directly into the operating system -- of course, it would have to be in a way that isn't intrusive, or annoying.
What do you think Microsoft needs to do to stop the bleeding? Let's hear in the TalkBack!