Hearts and minds
First, Microsoft needs to get itself back in tune with developers and entrepreneurs who are flocking from Microsoft-centric programing platforms to the more exciting realms of Apple and Android.
The shift to a Apple-based culture is noticeable among innovators and entrepreneurs, said Matt McIlwain, managing director at Seattle-based venture capital firm Madrona Venture Group.
"Five years ago I would have said 80 percent of the startups or ventures who came to pitch us pulled out their laptop and started showing us their PowerPoint presentation," said McIlwain. "Now 80 percent pull out their Mac. If I were Steve Ballmer, that would be concerning to me."
The enthusiasm of independent software developers is key for the health of what Microsoft calls its Windows "ecosystem". It has stirred excitement with its new motion-controlled Kinect system for the Xbox game console, but is lagging in the exploding market for mobile apps.
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