Microsoft Warning of Underwhelming Vista Sales

Microsoft & Google Software / Open Source Tech News

The Wall Street Journal (subscription required) has not one but two articles out today on Microsoft CEO Steve Ballmer’s warning of underwhelming Vista sales. The details are hazy, but investors don’t seem happy. The share price has dropped a bit as the news is digested. Here’s what Ballmer had to say:

He said that analysts’ projections of Vista sales are “a little bit over-optimistic” in terms of the effect the new OS will have on Microsoft’s revenue for fiscal year 2008.

During a
conference call with financial analysts he explained how software piracy, lower prices, and limited new corporate sales were all contributing factors:

“I’m really excited about how enthusiastic everybody is about
Vista. But people have to understand that some of the
revenue forecasts I’ve seen out there for Windows Vista in fiscal year
2008 are overly aggressive.”

He also had something to say in response to all the questions regarding the never-ending Google vs. Microsoft online battle. Analysts were concerned the software giant was spending a bit too much to go after Google in the online arena.

“We still have a lot more work to do, both on the
R&D side and the sales and marketing side,” explained Ballmer. “I
wouldn’t be frustrated. I’d be excited by the opportunities for
improvement.”

Incidentally, Ballmer’s quotes come on the same day Google announces its $23 million acquisition of in-game advertising startup Adscape. Of course, Microsoft already went through the buy-an-in-game-advertising-startup move last year with its $200+ million acquisition of Massive.

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