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Microsoft cuts 5,000 jobs, blame Vista, not Xbox

Posted on Thursday, 22 January 2009 by daffeh, source: NY Times
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Some not so good news has reached us from Redmond as computer giant Microsoft plans to eliminate 5,000 jobs according to the New York Times. These will be effectuated in the coming year and a half.

It comes as no surprise that even Microsoft has fallen victim to the current shabby economics and uses these as the main argument when asked 'why'.
“We are certainly in the midst of a once-in-a-lifetime set of economic conditions,” Microsoft’s chief executive, Steven A. Ballmer, said during a conference call. “The economy is resetting to a lower level of business and consumer spending.”
Eventhough announcing bad news, the big M couldn't resist pointing out bright spots. One of those was the Xbox 360 with about 6 million units sold worldwide between October and December 2008.

No news was given on whether these lay-offs will affect their Entertainment & Devices division, responsible for the Xbox.

Meanwhile Gartner claims to know the source of the current bad situation for Microsoft: Vista and its bad sales.
"Windows Vista didn't do well. Based on our data, a lot of clients are skipping Windows Vista," said Neil McDonald, an analyst at Gartner. Indeed, nearly every other major analyst firm found a similar lack of Vista adoption, with Forrester Research likening the OS to the failed New Coke.
Happy thoughts, think happy thoughts!
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