XP gets reprieve as Vista is too big and clanky

,----[ Quote ]
| That and the fact that Linux seems to be getting quite a nice foothold in the
| budget end of the market and Vole doesn't like to share its burrow.
| Microsoft has been caught with its pants round its furry ankles in the belief
| that system specs would rise year on year.



Feeling the heat at Microsoft

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| A couple of years ago you reiterated that IBM was Microsoft's biggest
| competitor and you said not just on the business side, but overall. If I ask
| you who is Microsoft's biggest competitor now, who would it be?
| Ballmer: Open...Linux. I don't want to say open source. Linux, certainly have
| to go with that.


Microsoft's SEC filing

,----[ Quote ]
| A prominent example of open source software is the Linux operating system...
| To the extent open source software gains increasing market acceptance, sales
| of our products may decline, we may have to reduce the prices we charge for
| our products, and revenue and operating margins may consequently decline.

http://www. microsoft.com/msft/SEC/default.mspx