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Microsoft is in a lot of trouble certainly. Reading both sides of the aisle on Microsoft, I think the products Microsoft produces for Businesses (SQl Server, Office Pro, etc.) will keep them from losing a significant chunk of PC sales to Businesses. However, Businesses only account for 40% of Microsoft PC Sales (based on Calculations I did off of Microsoft earnings press releases).

If they can't restructure their company they will have to eventually reduce in size significantly to maintain profitability.

Really? And what was Kinect? If not an innovation and a game changing product?