The World Now Realizes That Windows 8 Has a Problem

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There may never be a good time for a corporate shakeup, but what is the market to make out of Microsoft's (NASDAQ: MSFT  ) move last night to show Windows head Steven Sinofsky the door?

The job that Sinfosky did running the software giant's flagship division is debatable. The move to expand the roles of executives Julie Larson-Green and Tami Reller is also open for discussion.

However, the one thing that is clear is that it's just flat-out lousy timing to make this move just three weeks after the company introduced Windows 8.

There was -- and is (let's not write this operating system obituary just yet) -- a lot riding on Windows 8. It's a bold update, and the first by Microsoft to be tablet-centric. However, it also comes at a time when PC sales have been stagnant. The smartphone and tablet computing boom is fueled, by and large, by Apple's (NASDAQ: AAPL  ) iOS and Google's (NASDAQ: GOOGL  ) Android.

Microsoft usually waits several years between Windows refreshes. If Windows 8 isn't a hit, what will the landscape be like when it finally gets around to its next update? Will the market even care? Will Google's penchant for open source win the masses as Apple corners the high end?

Sinofsky's departure isn't Microsoft throwing in the flag, but it does raise questions.

If initial sales were going so well -- and that's something that we won't know for sure until late January -- why the shakeup at the top? It wouldn't be a surprise to see Surface sales suffering, but are retailers not moving enough of the Windows-8-fueled laptops and desktops? Is Apple getting ready for a new wave of ads that will do to Windows 8 what it successfully did in belittling Windows Vista?

Redmond may have been coasting on the hype of Windows 8, but Microsoft's move last night raises questions and doubts that it would prefer not to address this early in the new operating system's life cycle.

Hard times for Mr. Softy?
It's been a frustrating path for Microsoft investors, who've watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, with the release of its own tablet, along with the widely anticipated Windows 8 operating system, the company is looking to make a splash in this booming market. In this brand-new premium report on Microsoft, our analyst explains that while the opportunity is huge, the challenges are many. He's also providing regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.

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  • Report this Comment On November 14, 2012, at 5:33 PM, erniemink wrote:

    It is ridiculous to write a title that is not even true. "The world does NOT realize this." People who do not understand the point of a PC does. I have used Microsoft Windows for MANY MANY years since the beginning, and even in this article, points of u pdates are MISSED. Windows 8, like 7 and Vista are, and should be considered mandatory security updates every time. They do not just release the products to make money. We all know Apple and Google are greedy and corrupt, and this has not only been proven, it has shown since Apple was even formed. I know many who worked for Stevce Jobs, and he was not the true innovator the claims make at all. In fact he treatd his employees pretty poorly during the beginning and for a while, and maybe even to this day. Much can be covered up wtih lots of money sad to say. I do not care what stocks do. I care about what is best, and Apple and Google are NOT good at all. Windows 8 is doing great and they have sold MILLIONS of copies including the pre-built computers, tablets and the Surface. I am buying the Windows 8 phone as soon as either Simple Mobile will work or AT&T gets their costs down for us consumers. They are horrible. So please do not label things about the world, because even when I had to update or upgrade my computer because Windows 8 is considered a security update, it is still better than Apple. Why do you think the offices, call centers, gamers and many othoers use Windows instead of Apple? Safari is a horrible browser and Apple computers did not even start with the internet. Microsoft Windows and Internet Explorer did. Apple never got it right with Flash and the internet, so their computers, being proprietary and forced bought pre-built and over-priced, are horrible anyways.

  • Report this Comment On November 14, 2012, at 11:10 PM, Wjarvis98 wrote:

    I am surprised that MS made this move so quickly. This is either them thinking they failed or the sales expectations were not reasonable.

    I never understood why they came out with such a radically different product knowing how many corps have not adopted win 7 yet. Our own company has just started rolling out 7. Win8 may be a great product but I'm not even considering moving to it. Maybe in a year when it's had the first service pack. In the mean time MS needs to think of Win7 as XP and plan for the long run. If they don't more people will be looking at browser based solutions that are OS independent. If that happens MS will lose more ground.

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