Microsoft Faces Fight For Relevance
Updated: 5:20pm UK, Thursday 25 October 2012
By Thomas Moore, Sky News Correspondent
It's Windows, but not as you know it.
Microsoft's radical update to the world's most widely used operating system will either secure its future in a touchscreen era - or it will consign the traditional PC to the recycle bin.
Five years ago, more than 90% of computers ran a version of Windows, according to tech analysts Forrester.
This year - with Apple and Google dominating mobile computing - it is found on just 30% of devices.
PC manufacturers like Dell and HP have seen sales slump as consumers turned to iPads and Android tablets.
So Microsoft is betting big on Windows 8. Its marketing budget is estimated to top £619m ($1bn).
It will have to convince millions of users who are familiar with the old-style screen that they can work with the revolutionary new interface.
The new look has had a mixed reception from people who have used prototype beta versions.
The iconic start button has gone, as have the short cuts. Instead, apps are tiled on a bold metro start screen.
On a tablet, Windows 8 is just as slick as operating systems designed by Apple or Google.
But Microsoft makes much of its money from business users.
And they rely on desktops and laptops, where Windows 8 feels somewhat clunky.
It will need to convince companies that it is worth upgrading their systems and retraining their staff.
Microsoft has just reported a 22% fall in profits over the last quarter. It is by no means a crisis - the company still made a net profit of £2.8bn in just three months.
But computing is changing so rapidly that Microsoft is having to fight to stay relevant.
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