
Bungled branding of the new Windows Live Internet services has hurt Microsoft and could
affect its chance to play catch-up with Google, analysts said on Friday. On Thursday, Microsoft lowered its sales forecast for its Internet services business for the full year from 11 percent to between 3 percent and 8 percent. It also acknowledged that its search market share has dropped. Windows Live Search saw its searches drop nearly 10 percent from a year ago, while Google's rose more than 22 percent, according to figures released this week from Nielsen/NetRatings. Google has 50.8 percent market share, followed by Yahoo at 23.6 percent and Microsoft with only 8.4 percent.
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Windows Mail, included in Microsoft's new flagship operating system (that's Vista, for those not paying attention), doesn't work with the Windows Live Mail service.
That pretty much sums up Microsoft's strategy.
Google has its problems: a multitude of them, in fact, but they manage to not be quite as brain-dead as Microsoft, and that's why they're doing well.