Microsoft to propel WP7 with over a half-billion dollars

When you are entering a fiercely competitive market late, you better either have a unique product that changes everything, or enough money to promote your device like your life depends on it. While Windows Phone 7 may be a unique product, Microsoft is also throwing a boatload of cash behind its platform.

TechCrunch reports that “Jonathan Goldberg, an analyst at Deutsche Bank, estimates that Microsoft will spend $400 million on marketing alone for the Windows Phone 7 launch. That doesn’t include the millions it has already committed to pay for ‘non-recurring engineering’ costs that help offset development costs for handset manufacturers.”

It shouldn’t come really as a surprise that Microsoft is going to throw all of its weight behind the platform. For WP7 to have any chance at competing with Blackberry OS, iOS and Android, it will need all the help it can get.

If you’re thinking that this may not work, Microsoft has proven that this strategy does work. Several years ago when the original Xbox debuted, many thought it wouldn’t stand a chance against Sony and Nintendo’s offerings. However, if you look at the current marketplace today, you surely know that Microsoft has firmly planted itself into the home console genre and has been quite successful with it too. Microsoft relied on its ability to completely saturate a market, marketing and pushing a product to every home it has access to, and overwhelming the competition with numbers. It looks like Microsoft will be taking the same route with WP7.

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No matter how much money you spend trying to polish a turd...at the end of all the marketing and hype...it's still a turd.

'Throwing money at it' will help providing the platform and phones are actually good and people want them, if it turns out the phones were not a hit and don't gain mindshare and great sales it will have been money wasted.

In addition to marketing WP7 Microsoft also has to update WP7 at the breakneck pace set by Google, at least for the first year, i. e. 2011. There needs to be Winter, Spring, Summer and Fall updates.

MICROSOFT, YOU HAVE TO CHANGE YOUR PROCESSES TO DO SUCH HIGH SPEED DEVELOPMENT.

If Microsoft lost the Mobile Phone battle, their loss in the future will exceed much much more half a billion.
The mobile platform and the cloud are the future, Microsoft HAVE TO win a position in those 2 or its position will go really bad in the future.

kInG aLeXo said,
If Microsoft lost the Mobile Phone battle, their loss in the future will exceed much much more half a billion.
The mobile platform and the cloud are the future, Microsoft HAVE TO win a position in those 2 or its position will go really bad in the future.

They have already lost. MS is a company in decline if you couldn't already tell. It might take 10 - 20 years for them to completely disappear, but mark my words it will happen.

They're losing in every market - Gaming: The Wii is wiping the floor with them and now they're playing catchup by copying the motion sensor interface aka natal. Mobile: Well, their market share is in the toilet, the kin was an epic failure, and WP7 is looking like the Kin sp2. Search engine: Bing is well, irrelevant; the only way it can gain market share is by striking a deal with yahoo, that's how desperate they are, and once people start getting crappy search results, the exodus from yahoo to google will only accelerate further. Browser: IE was at 95% + at one point in time, but where is it now? 60% perhaps? Considering that it ships with virtually every PC in the world and it's still dropping like a stone, what does that say about it? OS: The real bread and butter for MS, and the monopoly that all their other products depend, without which they would vanish into obscurity. Today, Ubuntu and MacOS are far superior, and it's only a matter of time before MS loses its grip on the market, and once that happens, say bye bye to their entire product line.

LTP-- Macs sit with 5% of the market and open-source has never once succeeded in the consumer sphere without massive amounts of corporate dollars thrown behind it (and guess how those dollars are made? hint: not open-source). Mac was losing share a few years back, gaining share, losing, gaining. But if Microsoft losing somewhere, it's a permanent downward trend, eh? Me thinks you have a 90 year old Amish man's grasp of technology. Sorry kiddo. Fail.

LoveThePenguin said,

They have already lost. MS is a company in decline if you couldn't already tell. It might take 10 - 20 years for them to completely disappear, but mark my words it will happen.

They're losing in every market - Gaming: The Wii is wiping the floor with them and now they're playing catchup by copying the motion sensor interface aka natal. Mobile: Well, their market share is in the toilet, the kin was an epic failure, and WP7 is looking like the Kin sp2. Search engine: Bing is well, irrelevant; the only way it can gain market share is by striking a deal with yahoo, that's how desperate they are, and once people start getting crappy search results, the exodus from yahoo to google will only accelerate further. Browser: IE was at 95% + at one point in time, but where is it now? 60% perhaps? Considering that it ships with virtually every PC in the world and it's still dropping like a stone, what does that say about it? OS: The real bread and butter for MS, and the monopoly that all their other products depend, without which they would vanish into obscurity. Today, Ubuntu and MacOS are far superior, and it's only a matter of time before MS loses its grip on the market, and once that happens, say bye bye to their entire product line.

you are completely wrong about xbox. they revolutionized online and multiplayer and Wii is still trying to catch and failing. MS, nintendo and sony dont make money on the consoles but more on the games that are sold and as far as Wii is concerned, they have been lately relying on their own line up of mario and friends games. Developers have been losing interest in Wii for a while now. Xbox Live has been so successful that even Sony is moving onto paid online services.

Given that MS has been a leader in some other field but they are very diverse. Google does very well in Search Engine but has also not been able to do much in other field. Same goes for Apple and any other corp, they all have their bread and butter (MS has windows and Office just like search engine is google's bread and butter) and then they have ventured into other fields.

Thanks for reminding me about sheer amount of rubbish being pushed around the tech blogs and sites on a daily basis... I have been lulled into assuming that this story had some kind of real credibility because of its relatively uncontroversial subject matter...

Good solid marketing is the key to get this going, the other part is nice phones and good prices. Any lacking features will be added post-RTM, and they'll probably start adding things pretty quick to stay competitive.

Also the fact MS is the one who's going to be pushing out updates now (not the carriers) I expect to be able to even update my phone to a future WP8 (for a small price probably) without any problems.

dotf said,

Making the experience about you, not your apps.

Which is another way of saying they have no apps. Hell, they can't even pay people to produce apps for the platform.

LoveThePenguin said,

Which is another way of saying they have no apps. Hell, they can't even pay people to produce apps for the platform.

There are a notable number of apps that are already finished or close to finishing, even before WP7 came out. WP7 uses the same programming languages found in Silverlight and XBox.

But no, I don't remember reading that Microsoft will pay people to develop apps.

Microsoft is spending nearly $500 million dollars on marketing alone. Apart from that, they already spent millions on development, Engineering, building phones etc. All in all, Microsoft is spending nearly $1 billion dollars by the time of the Windows Phone 7 launch. They can afford it and that is only option that Microsoft has if it needs to get a strong start into the market.

I get sick of the 'tey missed the boat' mentality some people have, these markets are in constant flux, people get new phones every 18-24 months on contract and at that point most people will jump onto the next big thing if there is a feature that sells to them.

WP7 has xBox live, XNA for games - office built in for corporate types, really good email and exchange support, solid specs, neat interface, easy to develop for (meaning there will be plenty of apps), Zune with its Zune pass (same as I pay for spotify right now but I can keep 10 songs a month).

All MS needs to do is make people aware of it all - this is where the saturation via 500Mill comes in, after that its part of the game.

There is no such thing as being too late when the party is constantly moving forward!

I actually wanted to comment on the "late to the party" line. "Too late", "late to the game", "they had their shot", etc, are all the attitudes of people who clearly have no understanding whatsoever of how technology works.

I mean, it's as if they've already forgotten a few years ago when the exact same people were saying the iPhone had no possible chance of infiltrating the corporate world that RIM was dominating. Blackberries were already everywhere, Apple was too little (poor enterprise features in the beginning) too late.

But meanwhile, back in reality, businesses were jumping onto the iPhone bandwagon at a pretty steady rate. Whether it was for productivity or laziness (yes, even the corporate world is filled with kids and their toys--just look at Neowin's forums and people who wholeheartedly defend and will fight to the death for access to Farmville from their cubicles).

WP7's integration with Office project management (something that COMPLETELY escapes the guys at Engadget who literally think mobile Office is utterly useless if they can't build full Powerpoint presentations from scratch with it), the simple fact that Exchange and Microsoft sort of go hand in hand, a whole new approach to touch interaction and finally a departure from desktop-computing style GUIs? I think they have a shot.

duddut2 said,
I get sick of the 'tey missed the boat' mentality some people have, these markets are in constant flux, people get new phones every 18-24 months on contract and at that point most people will jump onto the next big thing if there is a feature that sells to them.

WP7 has xBox live, XNA for games - office built in for corporate types, really good email and exchange support, solid specs, neat interface, easy to develop for (meaning there will be plenty of apps), Zune with its Zune pass (same as I pay for spotify right now but I can keep 10 songs a month).

All MS needs to do is make people aware of it all - this is where the saturation via 500Mill comes in, after that its part of the game.

There is no such thing as being too late when the party is constantly moving forward!

I think the mentality comes from the investment people make in their platform, not so much the phone anymore. For example, someone who has a big collection of games and apps on the iphone, are they more likely to stick to the platform so they don't have to rebuy everything again.

I do agree that at the moment, this kind of thought is still quite young, however a few more years and people will keep to a single platform because of all the apps and accessories they have invested in the platform. However like i said the whole area is still quite young and certainly young enough for Microsoft to reenter the market and be successful, as could any other computer new or old. I think the key difference is that with the way things have gone we won't have a big dominate player, like Microsoft Windows, but most platforms will be about the same size. i.e. 33% share etc..


I understand your sentiment. But people are not buying iPhones for business dude, they buy iPhone for iFart. In business RIMM is still king of the hill by a vast margin, whatever iPhone is doing on the business side is fractional

Joshie said,
I actually wanted to comment on the "late to the party" line. "Too late", "late to the game", "they had their shot", etc, are all the attitudes of people who clearly have no understanding whatsoever of how technology works.

I mean, it's as if they've already forgotten a few years ago when the exact same people were saying the iPhone had no possible chance of infiltrating the corporate world that RIM was dominating. Blackberries were already everywhere, Apple was too little (poor enterprise features in the beginning) too late.

But meanwhile, back in reality, businesses were jumping onto the iPhone bandwagon at a pretty steady rate. Whether it was for productivity or laziness (yes, even the corporate world is filled with kids and their toys--just look at Neowin's forums and people who wholeheartedly defend and will fight to the death for access to Farmville from their cubicles).

WP7's integration with Office project management (something that COMPLETELY escapes the guys at Engadget who literally think mobile Office is utterly useless if they can't build full Powerpoint presentations from scratch with it), the simple fact that Exchange and Microsoft sort of go hand in hand, a whole new approach to touch interaction and finally a departure from desktop-computing style GUIs? I think they have a shot.

duddut2 said,
I get sick of the 'tey missed the boat' mentality some people have, these markets are in constant flux, people get new phones every 18-24 months on contract and at that point most people will jump onto the next big thing if there is a feature that sells to them.

WP7 has xBox live, XNA for games - office built in for corporate types, really good email and exchange support, solid specs, neat interface, easy to develop for (meaning there will be plenty of apps), Zune with its Zune pass (same as I pay for spotify right now but I can keep 10 songs a month).

All MS needs to do is make people aware of it all - this is where the saturation via 500Mill comes in, after that its part of the game.

There is no such thing as being too late when the party is constantly moving forward!

Considering that the vast majority of people still use flip/feature phones and even then change phones every one-two years, no one's late to this party. Not MS, not RIM, not HP/Palm, no one. It just seems like it to tech enthusiasts that have been using smartphones of some type for a while now.

duddut2 said,
I get sick of the 'tey missed the boat' mentality some people have, these markets are in constant flux, people get new phones every 18-24 months on contract and at that point most people will jump onto the next big thing if there is a feature that sells to them.

WP7 has xBox live, XNA for games - office built in for corporate types, really good email and exchange support, solid specs, neat interface, easy to develop for (meaning there will be plenty of apps), Zune with its Zune pass (same as I pay for spotify right now but I can keep 10 songs a month).

All MS needs to do is make people aware of it all - this is where the saturation via 500Mill comes in, after that its part of the game.

There is no such thing as being too late when the party is constantly moving forward!

The more crowded it is the more of a challenge it is to break in. You not have to meet the completion but exceed it as well. MS is showing it's got full backing + willing to advertise which is mandatory if they wish to have a chance. Won't know until after launch Microsoft has a chance, but starting this late put's them a bit behind.

Oh and the original xbox did poorly, they had to stick to there were going to go in the market and lose a lot of money before we make traction in the long run, same strategy with the Zune. One product worked, the other still a sales flop.

Edited by etempest, Aug 27 2010, 4:35pm :

For one, MS can afford to do this. For two, they need to do this this way. They are entering a market that in the US is controlled by Android, Apple, and RIM. Now, hopefully WP7 and the phones running the OS is worth the 500mil.

techbeck said,
they need to do this this way. They are entering a market that in the US is controlled by Android, Apple, and RIM. Now, hopefully WP7 and the phones running the OS is worth the 500mil.

Just to back up your point > Palm tried to enter this market without backing up their product and failed despite people talking nicely about WebOS. This smartphone market is not about being the best product anymore

Call me crazy but I think global launches make a huge difference too. Word of mouth now days travels at a global level and by limiting a device to US customers you will innevitably only get feedback from US buyers, not to mention many App developers from elsewhere will be slow to adopt the platform.

Clearly MS has waited for WM to pursue the Zune brand globally, but I've always maintained they would have done better there by getting the hardware and services out elsewhere if only for the word of mouth feedback it'd receive from people other than those in the US.

Purify said,
Can someone explain to me why the Windows Phone is supposed to be so good?

A solid Kernel, consistent hardware specs, a reinvented UI that puts your personal data ahead of apps, Apps that surface when you need them, zune integration, xbox live! integration, social network integration, geotagged bing searching....

those are the top things I can think of now that will make it so good.

dotf said,

A solid Kernel, consistent hardware specs, a reinvented UI that puts your personal data ahead of apps, Apps that surface when you need them, zune integration, xbox live! integration, social network integration, geotagged bing searching....

those are the top things I can think of now that will make it so good.


good summary!

dotf said,

A solid Kernel, consistent hardware specs, a reinvented UI that puts your personal data ahead of apps, Apps that surface when you need them, zune integration, xbox live! integration, social network integration, geotagged bing searching....

those are the top things I can think of now that will make it so good.

Upon that, it has a consistent operating system interface (and all the apps are based upon the some interface too) and also has Office products and integration with Exchange and SharePoint.

Almost every other smart phone (possibly not BlackBerry) does not have any office products available out of the box. Sure, there are some on their app stores and such, but they aren't always as good as the real thing.

Lechio said,

Another one.

As usual, anti-Windows comments with no substance. Good work, Lechio. Here, let me join the cool conformist crowd:
"HAW HAW MASSIVE EPIC FAIL M$ LOLOLOLOLOL ROFL"

See how dumb that sounds?

This is going to be an amazing platform. with features like XBL and the Metro UI, it's going to be amazing.

Rudy said,
Sometimes throwing money at a problem won't fix it

You are correct. However throwing money at it and backing it up with a very good product works most of the time.

I listen to Macbreak Weekly and this last tuesday two of the three guys (Leo and Andy) both admitted to both trying one out already and wishing the iPhone had some of the features. Both think it will be a hit.

If these guys are talking about it, on a Mac show, its going to be getting some attention after pour 400 million into ads.

Rudy said,
Sometimes throwing money at a problem won't fix it

Fix what? I wouldn't call Windows Phone 7 a fix, it's a new creation. There are some features that are needed but they will certainly come in time, but you know how you add those features? You pay employees, which requires money to be thrown.

bj55555 said,

You were home-schooled, I take it. The US ranks only 37th in the world in GDP educational spending. We spend too little on education, but it certainly doesn't help that f*cktards like these:
http://en.wikipedia.org/wiki/Duggars
are breeding like rodents.

How do they change anything? If I remember right they're all home schooled so they're not putting a strain on the education system

Rudy said,
Sometimes throwing money at a problem won't fix it

The problem with your statement is that, WP7 isn't actually a problem, it's a new buisness.

kimatg said,

The problem with your statement is that, WP7 isn't actually a problem, it's a new buisness.
The problem was that MS lost almost all it's share of the mobile OS market

Rudy said,
The problem was that MS lost almost all it's share of the mobile OS market
I don't think it's that big a problem really for two reasons. Firstly MS surely knew that over the past 12 years they weren't really going to sell WM 6.5 at all, hell the last release of any real note was the HD2 last year. I'm sure they planned for this.

Secondly and far more importantly, the market they lost with WM7's delay was a different market to what they are entering into anyway. Regardless of what many people may have used WM devices for in the past, generally it was seen as a pretty business centric device with particular big points being office and exchange support and all that. WM7 however is really more focused at the consumer market, people that want to play games, use facebook and listen to videos. Yes, Office and all thats still there but the device really is targeting a different market to previous WM devices and since it has a whole new eco system for apps and that and the OS wont be supported by older handsets, then the loss of market share probably isn't as big a issue as it would seem. Given a 10% WM 6.5 marketshare today probably wouldnt do much to sell WM7 given the ecosystems are so drastically different.

Rudy said,
How do they change anything? If I remember right they're all home schooled so they're not putting a strain on the education system

There are limited resources to go around. They're an enormous strain on the healthcare system, so by default, they are a strain on the educational system.

Idiots breed more idiots, and if their progeny also become devout followers of the Quiverfull movement, there will be thousands Duggar retards to be running around within two generations. There are enough retards that think the Earth is only 6000 years old without the Duggars' treating the vagina like it's a clown car.

Rudy said,
Sometimes throwing money at a problem won't fix it

+1
$500 million would give them a nice share at a company selling an Android solution that would bring them profit, instead they are throwing away that entire amount of money on a failed product. What a waste.

Ayepecks said,

Sometimes throwing money at a problem will fix it.

Not very often in the long term though, if that's all there is to it. In the short term: yes.

I will be impressed if Microsoft will be highly successful with this product.

Rudy said,
Sometimes throwing money at a problem won't fix it

Ya, like one time they threw money at Vista and look how much Windows 7 sucks.

Oh, wait, it doesn't suck..

Microsoft needs to throw money at things more than they normally do. Imagine more money for marketing like Apple does.

Win 7 phone will stand on a few things that the current smart phone market lacks; things like app stability and big name gaming with hardware to handle the gaming.