Microsoft: Revitalized?

Microsoft Innovation

Microsoft has surprisingly been very low-key in recent quarters. Still signs are looking promising as they slowly plod into new territory.

First, is hardware capability. Yes, Microsoft has had Xbox for quite a while, but let’s not forget that this was their first and very successful entrance to hardware. They took down an incumbent in Sony and played toe-to-toe with them (if not surpassing them). Not only that, they have invested in very promising gesture sensing technology (Kinect), something that may find itself in new capabilities with their computer software. We are also seeing an entrance to mobile and tablets, so this is promising for Microsoft.

Second, is reconfiguring its UI systems. This means the gestures, touch, and the mouse have the ability to be translated to their software. Do not forget Windows is still the most popular OS in the market and Microsoft has the ability to drive new innovations in UI. We are already seeing this in the Surface, but it will be interesting how this plays with other manufacturers.

Rebranding

You can see a change in the image of Microsoft. Right now, they are the standard bearer for OS software and playing it safe with their launches of Windows, but they’ve taken this opportunity to shift its image through multiple launches in Windows 8, Exchange Email System, Mobile OS, and Tablet OS.

Bing has been aggressively comparing itself to Google in web and TV commercials. Whether this switches people’s preference on search, it’s a healthy competitive stance. Google enjoys the #1 spot in internet search, Bing has the ability to steal market share, meaning it only has growth to look forward to. That cannot be said about Google, where their strategy is maintenance.

A big opportunity for Microsoft is in their hardware gaming division, namely Xbox. Where Apple has successfully integrated its divisions with one another (iPad, iPod, iMac, and iTunes work together), Microsoft has an opportunity to link their OS to Xbox. What does this mean? Well, imagine the Xbox community be able to connect with PC and mobile gamers. Or even sharing capabilities with other devices: accessing media and social networking.

High Risk / High Reward

Microsoft’s rebranding and increase in innovation has a high risk factor. First, they are playing catch up with a growing market. Second, radical changes can turn away loyal customers and developers due to its unfamiliarity. Still, there is a large market to win back and capture as they make these changes. Adoption is the key to these risks and Microsoft is in position to literally force adoption. They enjoy being one of only three OS in the market and being the one that’s already in most new PC’s. If the reception of Windows 8 is successful, it opens the adoption to the mobile and tablet market, since they are similar. This momentum can then be rolled out into their Xbox system.

Still, what do you think? I’m optimistic, in what I see because the opportunities are there in plain view, but there are many obstacles in the way.