Never stand still
Innovation never sleeps. Whether it's Microsoft (NASDAQ:MSFT) announcing new versions of its fledgling Zune portable media players or Adobe (NASDAQ:ADBE) throwing its hat into the "cloud computing" ring by providing free, Web-stored apps with its purchase of Buzzword's parent company, winning companies never quit.

This doesn't mean they shouldn't, though. No, this has nothing to do with Adobe. I think the company is on the right track. Some of the product announcements at its annual Adobe MAX conference were encouraging. I'm only suggesting the white flag as a fashion accessory at Microsoft, given the company's move to throw around even more money in going after Apple (NASDAQ:AAPL).

There's nothing wrong with putting out non-iPod media players. If you're a company like SanDisk (NASDAQ:SNDK) that excels in making flash memory, putting out flash-based media players is a logical application. There's no pretense in trying to create one's own ecosystem -- or even fake a personality -- as Microsoft is trying with Zune.

Microsoft would be better off emphasizing its software products, websites, and Xbox -- areas where the company has a legitimate shot at not embarrassing itself as it quibbles over razor-thin market share.

Innovation never sleeps. I know. However, sometimes it can really use a catnap to see whether it can wake up fresh, focused, and realistic.

Quick hits
A few more of the market's stories, in brief:

  • After turning heads when it announced that Halo 3 rang up $170 million in sales in a single day, shattering the $125 million mark set by Halo 2 three years ago, Microsoft went on to report $300 million in sales through the first week. Here's a thought: Package the third generation of the Zune in a few years as Halo 4.
  • Disney's (NYSE:DIS) ABC took the top spot in the Nielsen ratings during the first week of the fall prime-time season. Let's hope ABC has learned its lesson from burning out shows the way it did with Who Wants to Be a Millionaire a few years ago. As long as we never see Dancing With the Lost Desperate Housewives Anatomy, we'll be just fine.
  • Microsoft announced that it's buying a comparison-shopping website, just as reports began circulating that Yahoo! (NASDAQ:YHOO) is looking to unload its own comparison-shopping site. Either somebody's crystal ball isn't working properly, or the companies missed a golden opportunity to swap assets.

Until next week, I remain,

Rick Munarriz

Disney and Yahoo! are Stock Advisor selections. Microsoft is an Inside Value stock pick. Subscribe to either service and take advantage of a 30-day money-back offer. How's that for an offer one can't refuse?

Longtime Fool contributor Rick Munarriz recommends windshield wiper fluid when trying to look back. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. He does own shares in Disney. The Fool has a disclosure policy.