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"Microsoft plans to cut its losses on Windows 8, the latest version of the software that runs the majority of the world’s computers, jettisoning the brand in an attempt to appease millions of disgruntled users.
Industry sources believe that the world’s biggest software company will announce a new operating system, codenamed “Threshold”, at an event in April.
It is understood that ultimately Microsoft will call the system Windows 9 — a move, nonetheless, away from the Windows 8 brand that executives believe has become irreparably damaged by poor sales and scathing customer reviews.
The company will also make a number of changes to the system’s design and functionality. It will go on sale in 2015, far earlier than many anticipated.
It is only 15 months since Microsoft launched Windows 8, described as a bold reinvention of the bestselling software. Instead of inviting users to click on icons and boxes, it features big, colourful on-screen tiles that are meant to be touched. It was intended to transform Microsoft into a player on mobile phones and tablets.
Yet the company’s changes have alienated many who had become familiar with the original software. Last year Microsoft offered a free upgrade, called Windows 8.1, in an attempt to respond to the criticism. This included bringing back the “Start” button, which had formed part of every version of the software since 1995. Analysts said that Windows 8 was also struggling because it offered considerably fewer apps than rivals such as Android, Google’s software for mobiles, and Apple devices.
Paul Thurrott, an independent analyst and respected blogger on Microsoft, reported yesterday that the company was planning to unveil a series of changes during its “Build” conference in April. “To distance itself from the Windows 8 debacle, Microsoft is currently planning to drop the . . . name and brand this next release as Windows 9,” he said. “That could change, but that’s the current thinking.”
Other significant changes will be the “Metro” design of the software, although details remain unclear.
According to NetMarketShare, the internet statistics site, the overall share of Windows 8 is 10 per cent, well behind rivals such as Android. Sales of Windows 7, its predecessor, however, continue to rise.
“When we talk to the manufacturers, they say corporate clients are still buying more Windows 7 PCs,” Richard Holway, chairman of the industry researcher TechMarketView, said. “Windows 8 is not getting a look-in from the corporate users and the consumers I’ve spoken to all say they are appalled by it. I don’t think Microsoft completely understood what people wanted to do with it.”
Company sources insisted that they were encouraged by the range of new devices being released this year that run Windows 8 and pointed to the 100 million-plus licences of the software that were sold within its first six months of release.
Nevertheless, executives are understood to be increasingly concerned about the lack of uptake for Windows 8 on mobile devices. They believe a failure to break into this market could be disastrous, as consumers shift from traditional PCs.
Some suggested that the confusion over who will take over from Steve Ballmer, Microsoft’s chief executive, is damaging attempts to reboot the software. Last week Alan Mulally, the Ford chief executive, ruled himself for the role and other candidates are thought to include Stephen Elop, Nokia’s former chief executive, Satya Nadella, the head of Microsoft’s enterprise group, and Tony Bates, who leads business development. No decision is expected before next month, but may take longer.
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