The WiFi market is already inhabited by a lot of other companies. The problem is that MSFT hasn't innovated anything, taken the market in anything new in a long time. Some would say, innovation never. Personally I think Office is an excellent program, and I use that product.
Today there was an announcement they lost another patent infringement suit for $62 million.
They lost another one recently related to Internet Explorer. As their fangs are drawn, they'll be losing more and more of those little patent infringement suit, putting another nail in their claims of innovation. These convictions for patent infringement effect their credibility both when they say they are an innovative company and when people think about what sort of company they are. The amount of money they lose is small to them, but the effect in the stock market can be larger.
I had a little software company some years ago, on the Mac, and they forced me to withdraw a trademark application, not because they had the mark, but because they might want to have it some day and/or because they forgot to file for it themselves on the Windows side. They never came out with a competing Mac product to mine, never came out with any new Mac products at all. They did IE and Office and maintained those on the Mac. But no company was too small to be pushed around by MSFT. These days they might not be able to do that so easily, so a lot of things they were doing to keep their market domination they can no longer do. That gives them more of an even playing field, and will cut into their market share in general.
If they can't threaten and intimidate other companies and can't steal other companies' products, the strategies that helped them get on top, what can they do in regard to bringing out new successful products that grab all the marketshare? Is it enough that they keep their domination in Windows and Office?
WLD is right that an important negative for MSFT is the pressure on them to release their source code. If they ever do that, there will legally be clones all over the place of their products and they'll be buried. I'm not sure they'll ever do it, though. It's something that can be drawn out for many years and which MSFT can sabotage even when they do it. However it is a sword over their heads and puts a damper on their future.
You can see my bias in this matter. When Jim says they will make a lot of money when people upgrade soon I think he's right, but I wonder if that's enough.
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