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Joined Nov 11, 2007
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$MSFT Does a U-Turn on Windows 8

Microsoft is preparing to reverse course over key elements of its Windows 8 operating system, marking one of the most prominent admissions of failure for a new mass-market consumer product since Coca-Cola‘s New Coke fiasco nearly 30 years ago.

“Key aspects” of how the software is used will be changed when Microsoft releases an updated version of the operating system this year, Tammy Reller, head of marketing and finance for the Windows business, said in an interview with the Financial Times. Referring to difficulties many users have had with mastering the software, she added: “The learning curve is definitely real.”

Analysts warned that changing course would be a significant admission of failure for Steve Ballmer, chief executive, who called the October launch of Windows 8 a “bet-the-company” moment as Microsoft sought to respond to the success of Apple‘s iPad.

(Read MoreMicrosoft Is ‘Not Dead Yet,’ Say Wall Street Pros)

“It’s a horrible thing for this to happen to your flagship product – he’ll take a hit for that,” said Mark Anderson, an independent tech analyst. “But he’s also responsible for a renaissance inside the company. There’s a level of risk and creativity going on that would never have happened two years ago.”

Richard Doherty, analyst at tech research firm Envisioneering, said: “This is like New Coke, going on for seven months – only Coke listened better.” Coca-Cola dropped its New Coke formula in response to a consumer backlash less than three months after launch.

Windows 8 was an ambitious attempt to update the personal computer for the tablet era by moving to a new touchscreen interface based on colorful tiles, hiding the “desktop” launch screen familiar to white collar workers and consumers around the world….”

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