More marketing dollars will sell Vista: Ballmer

Microsoft CEO Steve Ballmer believes the software giant needs to spend more on marketing in order to sell more copies of Vista and has hinted that a sizable increase in its marketing budget is on the horizon.

It has been estimated that over US$500 million has been spent on marketing Vista since its release.

Speaking at a Microsoft strategic update conference in the US on Monday, Ballmer told attendees that the company will have to begin reengaging consumers in the face of renewed competition.

"We're going to have to invest more than we ever have in consumer excitement," said Ballmer.

The Microsoft CEO told attendees to expect more done to "highlight Windows" and said the task will "require more investment".

According to Ballmer, Windows is the company's biggest growth opportunity, which could, according to an analyst, be because large companies still prefer XP over Vista.

Matthew Oostveen, software analyst at research firm IDC, said that Ballmer's announcement does not come as a great surprise given "the public's reception to Windows Vista was lukewarm at best".

"While the year of Linux on the desktop never eventuated, threats to Microsoft's desktop dominance came from the surge in Apple, which was buoyed by its iPod sales," said Ootsven.

Microsoft's Ballmer also hinted at progress on Vista's successor -- Windows 7 -- but would not discuss any details at the conference, saying: "I'm not really going to talk about that now, but we're very hard at work on the next version and I'm enthused about what we're doing."

CNET News.com's Ina Fried contributed to this report.

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Talkback 5 comments

    the year of Linux Anonymous -- 05/02/08

    There will never be a year of Linux, it will just continue to creep up on you. As for Vista, there was never a year for Vista, and never will be. No amount of marketing dollars will fix it now, people are not that silly anymore - so put your money to good use - like a charity or something.

    you shouldn't put lipstick on a pig. Anonymous -- 05/02/08

    I recently bought a new HP pavilion laptop which had Vista installed. I thought that with a Core 2 Duo processor and 3 Gig of RAM it might be usable. You have to be kidding! Like many others, I have 'upgraded' to XP. It has a smaller (one tenth the size) hard-drive space requirement, and just works better.

    Marketing, schmarketing! When will the MSFT shareholders get some smarts and fire steveb? I'm not holding my breath.

    On second thoughts, maybe we should keep steveb, MSFT will collapse faster, and we can all use something better than Windows a whole lot sooner.

    Marketing Dollars will FAIL Matt -- 06/02/08

    Microsoft don't get it.

    WE DONT WANT VISTA.

    Microsoft have not yet realised that the average end user (business and home) has far more information on products. Blogs, User Groups, Discussion Boards reach hundreds of thousands of people - providing REAL WORLD EXPERIENCES of products.

    Real world experiences that contradict the marketing spin.

    Ballmer would do well to get out amongst the little people - not the big corporate accounts and government accounts - those with LESS than 500 users - this is where 65% of the market is - and hear their experiences with Microsoft products face to face - not through some shonky Nielsen survey.

    A good product sells itself Paul G -- 06/02/08

    Steve B's announcement, to me, sounds novice. How is this increased marketing spend going to change the opinions of the plethora of blogs, user groups and discussion boards that Matt (-- 06/02/08) talks about?

    There is too much negative sentiment in circulation to extinguish it now.

    Speed Anonymous -- 11/03/08

    They should spend that money on making a extreme version of Vista.

    This version should strips out all the bloatware and just be a highly optimized core which allows for fast boot times and performance.

    Fast loading and less crap is what a lot consumers want and specially business customers, you aren't going to be able to build excitiment with a few ads.

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