twitter's Journal: M$ Loss of Clout is Noticed by Public

Vista and Yahoo failures have the Detroit Free Press asking how much clout Microsoft has lost in the tech world.

Lost in all the hand-wringing over the hit Yahoo! is expected to take from investors today after Microsoft withdrew its bid to buy the company over the weekend is what I think is the larger story: Microsoft's dwindling clout as the tech world's biggest player.

Maybe it's because Bill Gates is removing his laser-focus ... Maybe it's because Steve Ballmer is such a high-pressure blusterer. Maybe it's because Microsoft is perceived as too big, too much a bully, too monopolistic and too untrustworthy a partner.

consider what's been happening at Microsoft. Its much hyped Vista operating system upgrade for Windows has met with a wave of consumer rejection and near rebellion from big PC makers like Dell and Lenovo, which have vowed to continue selling the older and much more popular Windows XP past a Microsoft deadline for switching to Vista. Ditto with Silverlight, a proprietary Microsoft browser plugin video player alternative to Flash. ... I linked to a Microsoft video the other day about its new Live Mesh online storage and data exchange -- another product that seems either unneeded or too Microsoft-centric -- and my mailbox was flooded by readers angry that they couldn't see it without jumping through the download hoops.

Others have pointed out the employee exodus, stock price failure and billions lost to start up second rate stuff like Xbox and Zune while discussing the removal of Steve Ballmer as the next Vista Scape Goat. A 24% drop en earnings from your two cash cows will do that. These problems are predicted to grow as the US enters a recession and more people will notice.