Steve Ballmer absolutely should not remedy his failure to leverage Xbox in the living room by making a pair of mistakes. Buying Netflix and getting into a business that represents the exact opposite of what the future will look like.

Microsoft can win in the living room. It doesn't need Netflix or the Netflix model to do this. I know exactly what it needs to do. If it doesn't do it, somebody else will.

See Microsoft Can Become Cool Again for details.

-- Written by Rocco Pendola in Santa Monica, Calif.
Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.

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