Microsoft: We've Been Too Slow Going Consumer

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It’s hard to imagine, but Microsoft was once in Google’s place – the unstoppable tech darling with enough cash on hand to start whatever project they wanted (Microsoft Bob?). But now, Microsoft has lost of a lot of mindshare, with them often falling behind competitors like Apple and Google in multiple markets.

Hsaio-Wuen Hon, the managing director at Microsoft Research Asia, said that the company has been too slow to embrace consumer trends lately. “Looking back I can say we probably should have done more in the consumer space. When we talk about an ‘enterprise user’ they are actually the same person because when they go home they are consumers.”

It’s hard to blame Microsoft. Their solid operating system for IBM PC clones in the early 1990′s became a de facto standard for business. But they’ve also missed some important consumer trends, and now they’re playing catchup with the iPod, Bing, Windows Phone 7 and even the Xbox 360, which, despite having sold more units that the PS3, is seen as lacking behind Sony’s console technologically.

However, Microsoft’s research labs (aptly named “Microsoft Research”) are hard at work developing new and interesting technologies that the company hopes will be the next iPhone or Wii.  The Sydney Morning Herald reports that Microsoft Research Asia is working on everything from statistical models of population growth to 3D mouse technology.

On Microsoft’s reputation, Mr. Hon said to the Morning Herald, “We are aware that we are not necessarily a media darling. People don’t perceive us as innovative as we actually are.” A big directive in Microsoft Research is the shift from a graphic user interface (GUI) to a natural user interface (NUI – like the “Tom Cruise computer” in the film Minority Report). Project Natal, the upcoming add-on for the Xbox 360, will be the company’s first finished product with a NUI.

Natal, out this holiday season, is apparently five years worth of research from Microsoft. We’ve already seen Surface and a few other technologies come out of Microsoft recently. Do you think Microsoft will ever return to being known as a hot innovative company?