This is why I have such a hard time believing/diving into any "new" Microsoft offering...
Category Microsoft
So Microsoft kills off the KIN mobile device after devastatingly nonexistent sales. And... it does this just two months after they release the device. Can you imagine if you had decided to build an offering for the KIN or staked a significant amount of time and effort to support the device based on Microsoft's assurances that this would be the next greatest thing since sliced bread?
I find it hard to believe that a company the size of Microsoft could spend hundreds of millions of dollars (if not billions over the life of the project) on a device that reportedly only sold between 500 and 1000 units. This is during the same time that Apple can't even keep up with the demand for iPhones and iPads. Was their market research for the viability of the KIN *so* off-base as to give it a shelf-life of only two months? Did they even *do* research?
It amazes me that a company, regardless of their size, could spend as much as they did on "Project Pink" and basically write the whole thing off as a loss without the market clobbering them. And it's not like this is a first for MS when it comes to entertainment devices... Zune has underwhelmed the market. Xbox has been a money pit with MS subsidizing the devices in hopes of establishing market share. Quarterly reports would argue that they haven't been successful with that strategy unless they're playing by the rules of golf... lowest dollar total under break-even wins.
If I were on the board of directors for Microsoft, I'd be looking for some heads to roll, and there's just been one head at the top of all of these flops... Perhaps Ballmer needs to step down to spend more time with his kids and family, and to pursue "other opportunities."
It's repeated episodes like the KIN that make me look at all new and shiny Microsoft offerings with a cynical glance, and let them play out for awhile before seeing if something's going to stick. It's a given that betting on first-generation MS offerings is not a sure thing, and life is too short to follow a company around hoping to stake your career on something that for them seems to be nothing but a rounding error if they decide to write it off.
So Microsoft kills off the KIN mobile device after devastatingly nonexistent sales. And... it does this just two months after they release the device. Can you imagine if you had decided to build an offering for the KIN or staked a significant amount of time and effort to support the device based on Microsoft's assurances that this would be the next greatest thing since sliced bread?
I find it hard to believe that a company the size of Microsoft could spend hundreds of millions of dollars (if not billions over the life of the project) on a device that reportedly only sold between 500 and 1000 units. This is during the same time that Apple can't even keep up with the demand for iPhones and iPads. Was their market research for the viability of the KIN *so* off-base as to give it a shelf-life of only two months? Did they even *do* research?
It amazes me that a company, regardless of their size, could spend as much as they did on "Project Pink" and basically write the whole thing off as a loss without the market clobbering them. And it's not like this is a first for MS when it comes to entertainment devices... Zune has underwhelmed the market. Xbox has been a money pit with MS subsidizing the devices in hopes of establishing market share. Quarterly reports would argue that they haven't been successful with that strategy unless they're playing by the rules of golf... lowest dollar total under break-even wins.
If I were on the board of directors for Microsoft, I'd be looking for some heads to roll, and there's just been one head at the top of all of these flops... Perhaps Ballmer needs to step down to spend more time with his kids and family, and to pursue "other opportunities."
It's repeated episodes like the KIN that make me look at all new and shiny Microsoft offerings with a cynical glance, and let them play out for awhile before seeing if something's going to stick. It's a given that betting on first-generation MS offerings is not a sure thing, and life is too short to follow a company around hoping to stake your career on something that for them seems to be nothing but a rounding error if they decide to write it off.
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Comments
Posted by Keith Brooks At 17:21:07 On 30/06/2010 | - Website - |
Posted by Andy Donaldson At 17:44:25 On 30/06/2010 | - Website - |
Posted by George At 21:41:07 On 30/06/2010 | - Website - |
If you're an ISV looking to get apps onto platforms and devices, this is one of the risks you need to assess.
If you're a small micro-ISV, you'd probably step back and watch to see if it gets any market penetration after a 6 months and see if there is any potential.
Larger ISV's can take a punt and invest prior to launch and have a go. So, if you really want to take a gamble at being first on board in a new platform device, you need to work out risk management/mitigation. One strategy is to consider getting MS to sponsor some of the development work to offset some of that risk. It also shows the vendor's keenness and commitment to.
Posted by Giulio At 23:37:06 On 30/06/2010 | - Website - |
As with all of their innovations, they don't last very long...Kin just reinforces the pattern and perception.
Well put, Duff. Good post.
Posted by Bill Malchisky At 05:56:09 On 01/07/2010 | - Website - |
Posted by Allison At 09:10:21 On 01/07/2010 | - Website - |