That’s what Mark Anderson says about M$’s IT. He says they are in trouble with respect to consumer goods except for Xbox and suggests re-organization. He suggests they should either focus on consumers or stick with IT in business.
I think they are in trouble everywhere. It’s not that they are not making money but their growth is so much less than other businesses that they will become a niche player. Their shrinking monopoly will be all they have. Eventually, they will become a patent troll or bitter failure like SCO. The only thing preventing total collapse at the moment is the loyalty of the “partners” who are solidly locked in. Consumers are not and when the consumer gives their custom to OEMs who are not partners or who break rank with M$ there will be no way to recover from a huge slide.
I am not worried. GNU/Linux can easily take up the slack in software. Consumers have many choices in ARMed gadgets. They soon will have choice in ARMed PCs at the retail level. M$’s shares are down 25% from the post-”7″ highs, about even for the year. RedHat is up 50% in the last year. M$ does not own the future.

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-He says they are in trouble with respect -to consumer goods except for Xbox
Xbox is a success?
The first version lost somewhere between 5 and 8 billion and the 360 is around break even when you take in account the Red Rings fiasco cost the company about a billion too.
Nothing spells success like a 56% failure rate (which means little until you see that the other two are just on either side of 10%).
Of course if we compare this to the OS having HALF of your game consoles fail is a step up for Redmond.
I remember I was teaching in the Arctic when an Xbox auto-incineration failure became public. I remember reading the notices in class because many students used the thing and were unaware that it had such a problem. Strangely, I do not remember any student deciding to cease using it. It’s a bit like that other OS. You can tolerate a lot of abuse if introduced gradually.