This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Microsoft's Biggest Mistake

Stocks in this article: MSFTAAPLRIMMFB

NEW YORK ( TheStreet) -- Over the weekend, my neighbor brought home Xbox Kinect. Last weekend, TheStreet's Robert Weinstein picked one up. I used to own an Xbox. Loved it. In fact, I have never heard anybody anywhere speak ill of this Microsoft (MSFT) creation.

I get the feeling, however, that Microsoft CEO Steve Ballmer either hates Xbox or has no idea what to do with it.

Ballmer should be actively focusing everything his company does around Xbox. Doing so might save his butt from getting fired. I'm not sure Bill Gates can take much more of his friend and CEO's scatterbrained incompetence.

All it takes is a little common sense and something that's apparently even more difficult to come by in tech these days -- vision.

You have this product -- an excellent piece of hardware that blows away the competition. Nobody even comes close in the gaming space. And, from a broad living-room standpoint, you even beat the snot out of Apple (AAPL).

Steve Jobs ate Ballmer's lunch in every single room of the house, but he could not dominate him in the living room.

It makes no sense at all to attack Apple in the traditional consumer market -- and, increasingly, in enterprise -- vis-a-vis desktops, laptops and mobile devices. Give it up. You lose.

Keep your PC business, particularly the relatively healthy parts, alive as best as you can. However, position your company for the inevitable death of the PC. Drop dreams of getting share in the tablet or smartphone market. There's a less than zero chance Microsoft can generate enough mobile success to even ding Apple or Anroid. They're in as bad a position as Research in Motion (RIMM), if not worse.

Look at Xbox as the hub for everything.

It already owns the image as the gamer's go-to device. It continues to slowly emerge as a broad entertainment center for the entire family. Ballmer needs to continue to push that angle and take things a step or three further.

Leverage Microsoft's other strength -- productivity software (i.e., Office) -- in tandem with Xbox.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,828.24 +0.49 0.00%
S&P 500 2,067.56 -5.27 -0.25%
NASDAQ 4,791.63 +4.3130 0.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs