"A much bigger threat to Microsoft than Linux is market
stagnation. Holding 90 percent market share means that you have to
look to other markets for customers (Xbox, keyboards, mice, Pocket
PC). Another option is to try to sell your product yet again to the
same people (read: XP) -- or to change to a rental structure
(insert .NET here).
Microsoft should be spending its billions generating new demand,
not trying to take its 90 percent market share to 92.5 percent.
Where are the golden oldies, like voice recognition, speech
synthesis, handwriting recognition, not to mention all the crazy
stuff that no one has dreamed up yet? Where are the VR interfaces,
massive dataset visualisers, database filesystems, all built to
smash the average PC user's machine into whimpering shards and only
run on XP?"