Microsoft layoffs: Netbooks sales are killing us

I beleive it's also because

I beleive it's also because MS makes less on an XP sale than a Vista sale and all MS flavored netbooks come with XP (excl. HP).

One of the main reasons for me to get a netbook was because I wanted XP and didn't want to have the hassle of downgrading a regular laptop from Vista (only MS choice) to XP

evolve or perish

Microsoft is a software company that's losing out because it's refusing to write software for Linux-based computers. They're bogged down by their old goals of Windows running on every desktop. The company needs to build on its core strengths. Instead of wasting effort on projects like Vista, they should be porting their applications and games to more platforms, making their products more secure, listening to customers, and allowing open source to work for the company instead of against it. Telling a consumer they can't run Microsoft Office or play a video game on their system because it isn't running a Microsoft OS is the wrong answer. To quote Alex Baldwin:

"You got the prospects comin' in; you think they came in to get out of the rain? Guy doesn't walk on the lot unless he wants to buy. Sitting out there waiting to give you their money! Are you gonna take it? Are you man enough to take it?"

Microsoft is a software

Microsoft is a software company that's losing out because it's refusing to write software for Linux-based computers. They're bogged down by their old goals of Windows running on every desktop. The company needs to build on its core strengths. Instead of wasting effort on projects like Vista, they should be porting their applications and games to more platforms, making their products more secure, listening to customers, and allowing open source to work for the company instead of against it. Telling a consumer they can't run Microsoft Office or play a video game on their system because it isn't running a Microsoft OS is the wrong answer. To quote Alex Baldwin:

"You got the prospects comin' in; you think they came in to get out of the rain? Guy doesn't walk on the lot unless he wants to buy. Sitting out there waiting to give you their money! Are you gonna take it? Are you man enough to take it?"

MS killed MS

They controlled the PC world for 25 years. They got lazy and greedy. Microsoft is so far behind it aint funny.

Problem: Not Netbooks but the "cheaper-than-netbooks"

Geeks.com sells a laptop with similar-to EEE capability for $169.

That's the problem: Intel, HP, Dell, etc., can't hold the line on even netbook prices because there are much cheaper alternatives http://www.alpha-400.com out there, and the price keeps going down. The Alpha 400 (400 MHz) mini laptop has been as low as $149.95. The Elonex has sold tens of thousands of units in the UK and Europe.

These devices create a whole new category of laptops below the netbooks in price and performance. The trend is inevitable.

That's the problem.

"Many" is classified as 50% or more

"Many" is classified as 50% or more. Since Linux' share of the netbook market is roughly 30%, the appropriate word would be "some". No?
Further, though you do mention that MS misses the opportunity to sell MS Office, you fail to include the fact that even though they retain a 70% market share in netbooks, Microsoft gets far less money for each copy of XP home, far more of a factor in their bottom line than Linux' share. Then again, if Linux wasn't virtually free the price for Xp would likely be much higher. Competition is indeed good for the consumer.

I'd be curious to know how much Vista sucking as bad as it does has affected the growth of netbook sales considering that Xp is only still readily available on them.

Microsoft hopes Windows 7 will be a Linux killer

It won't be.

It'll have to be blazingly good to be better than Ubuntu Intrepid Ibex, and by the time it arrives we'll be onto Jaunty, and it won't be free.