If you were thinking all the cards in the Microsoft vs Google have been played, you are mistaken. There is one strength of Microsoft that Google cannot interfere in that is gaming and the Xbox. Google does not yet have presence to be able to make a dent.

It is only the intention of Microsoft that is out and it does have the luxury of time on its side. In advertising for a recent senior position, Microsoft could actually be declaring its intentions to the world. Microsoft could actually be toying with the idea of developing a common platform for the desk top and mobiles, combining the best of Xbox, Zune and Windows Mobile and evolve a platform where gaming can become flexible and can be accessed seamlessly from a mobile or desk top.

Microsoft calls this strategy “Live”. The first step in the strategy of Microsoft seems to be developing a “Live” community which will be enabled by a casual and social platform across the web, console, mobile and beyond. Microsoft is probably already conjuring images of invading and dominating all the three existing screens as on today and any that may appear tomorrow.

Initially Microsoft has launched Xbox Live Community games in 2008 and these were introduced to Zune and next month Zune HD is being launched. The next logical step would be provide Windows Mobile capability. Although this has not yet begun the process is under way.

I wonder what will happen to all other gaming companies? They will be either forced to conform or whittle away?

The first smart move that Microsoft had made was to prominently display Tweets as results. But may be it was biting off more than it can chew. Now comes the news that first, Facebook has acquired FriendFeed for $50 million , second it has replaced Live.com its search engine with Bing. Readers remember that Microsoft has 10% share in Facebook.

Facebook is no doubt much improved and less cluttered and more efficient in its search capabilities. In the old Facebook one had to browse through various categories and there was no way to search for shared items and status updates. Now tabs have been provided on Facebook on the left side where you can simply click to find various categories. You can also seach the web and find the results displayed as a filter rather than on your own page.

Hitherto the facility of sharing your up dates was not available to others and Twitter certainly scored over Facebook where you could search for anything on the earth. Now on Facebook you can go to “Posts by Everyone” and find information the same way you do on Twitter. A message on top of the screen will update the results of your query as they appear.

Although, Facebook has made its intentions clear the problem seems to be with the users who are not prepared to part with personal information to “every one”. Facebook is trying to get over this problem by introducing new privacy options.

The rivalry will begin if Facebook succeeds in turning Twitterish.

So, it is still early hours to expect Twitter to react and know how it will fend off competition. But, will Twitter move closer to Google?

Google vs Microsoft:Microsoft Inks Deal With Yahoo

Microsoft has finally inked the deal with Yahoo to take on the might of Google. The deal is interesting if not intriguing. Yahoo had resisted the moves of Microsoft to buy it out. Then waited for Microsoft to launch its own search engine Bing and contrary to public declarations from Microsoft, held its own against Microsoft. So is the present deal better than the $44 Billion that Microsoft initially offered?

Microsoft’s global presence is only 4% as on today, about as much as Yahoo. If Microsoft wants to be a serious contender to Google it has to have a global presence where Google holds 90% of the traffic. So, what does the deal offer Yahoo?

• The Agreement is for a period of 10 yrs where Microsoft will have access to Yahoo’s search competencies and technologies.
• Although the search Algorithm for both will be Bing only, the display Ad business and sales force will be separately maintained by Yahoo.
• The search service access for both the companies will be Microsoft AdCentre.
• Yahoo will be compensated for the revenue it generates on its net work.
• For the first 5 years Yahoo will be paid 88% of the revenue generated on its net work.
• Through this deal Yahoo expects to get $500 million in operating income and Yahoo will also save $200 million in expenditure. Yahoo also expects its Annual operating income will increase by $275 million.

Microsoft’s Quarterly results are out. The Hurt begins to show, of trying to take on Google and the inability to succeed. Bad news has poured in from other areas too. The Windows business is not doing spectacularly well either which is the bread and butter of Microsoft. The main impact of Windows will be felt in October after the official release of Windows 7. The search business has not given any cheer either and the loss inspite of the revenues has shown. Here are some salient points :

• Total Revenues down !7% to $13 Billion.
• Net Income down 29% to $3 Billion.
• On Line business suffers operating loss of $732 Million.
• On Line Business Revenues at only $731 Million.
• On Line Business Total Operating Loss $2.2 Billion.
• Windows Revenues for the quarter down 29% to $3.1 Billion.
• Xbox revenues down 25%, Operating Loss at $130 Million.
• Servers and Tools Operating profit flat at $ 1.3 Billion.

The atmosphere is thick with rumours of Microsoft taking on Google by buying out Yahoo’s On Line Search andAd business. This is the best way that Microsoft has found to take on Google.

Earlier Microsoft had offered to buy out Yahoo for sub $45 Billion. But Yahoo played hard to get and had spurned the offer and the suitor. One cannot but admire the fact that Yahoo had played its cards well.

Yahoo forced Microsoft in to going on its own way that is the Bing way. Contrary to the news appearing in some quarters Bing did not make any dent in either Yahoo’s share or Google’s share. While in the U.S both Microsoft and Yahoo put together nearly account for 14 – 15% of search views, when it comes to Global views Google’s share goes up to a daunting 89%.

Microsoft has no alternative now except to go by Yahoo’s terms to appear to have a respectable share of search views.

The details of the deal have not been announced as yet but going by the urgency being shown it appears that it will be on Yahoo’s terms.

With the mere 10% share in U.S advertisers will not be coming forward to pay much money over and above what it was being paid before the launch of Bing. Taking over Yahoo’s On line search and advertising business will make Microsoft look a tad more respectable when advertisers approach them.

As to the exact price Microsoft will pay for the loss of face – well wait for the details to emerge.

Microsoft vs Google : Microsoft develops Cold Feet

The much anticipated “Monday” has come and gone and Microsoft’s revelations in reply to Google’s Chrome OS did not really set the web on fire. But one thing did happen, that is both Bill Gates and Steve Balmer came out in the open to issue statements.

The first thing that strikes you about Bill Gates statement is that he does not know much about what Chrome OS is setting out to do, so he cannot comment. Notice that he did not say in the breath that Google OS is also meant for desk tops as the media made it out to be.

The second thing that both CEO of Microsoft and Bill Gates pointed out is that Google already has an OS, Android and experience has taught Microsoft the futility of having two operating systems.

The third thing that was expressed was that Microsoft was going to persist with Windows in the present form.

In other words status quo was maintained by Microsoft or they have developed cold feet. The reason they have not committed Windows to the cloud could be that they are not sure of what the reaction would be or they are not prepared to handle the cloud. It could also be that they do not want to lose the revenue that Windows might generate if they react to Google.

Microsoft had the chance to act but they dilly dallied the issue. They could have seized the initiative but they didn’t. They have given Google time. When the desktops have an opening into the cloud people will remember that Microsoft had a chance but chose not to act for the obvious reason.

As they say it is advantage Google.