Like most people I know. I hate Microsoft products and avoid them like the plague as much as possible. However, there are obvious exceptions. Word isn't perfect, but Google Docs still can't do hardcore word processing. Despite being the most poorly named creation ever (But It's Not Google), I've found that Bing does provide an extremely high return on investment for advertisers. Although, Microsoft makes you earn it because Microsoft Ad Center is beyond uselessly frustrating and counterintuitive. Excel is awesome, and that can't be denied. Then there's Xbox. While I don't own an Xbox, I definitely like playing Xbox. Even though I was very excited for its release, my excitement over Wii died within minutes of playing it, and I've never bothered to play a Playstation 3. Despite its full suite of terrible products, Microsoft did win with Xbox. In fact, Microsoft gets another pat on the back because they actually designed it in house.

That's the problem, Microsoft won with Xbox and has lost with everything else they've created since before the 21st Century. This morning I read about the dismissal of Robbie Bach, head of its video games and mobile phones unit. Let's be honest, this did not come as a surprise since Microsoft completely dropped the ball on the mobile market and even more so now that Palm belongs to HP. What did surprise me is that despite Xbox's success, this thrilling product really doesn't do anything for Microsoft. Entertainment and devices is the fourth-largest of Microsoft's five operating units -- behind its Windows, Office and server units. Even though it did account for 11 percent of the company's Q1 revenue, Xbox, Zune, and mobile only accounted for 3 percent of the world's largest software maker's operating profit.

Did I just miss something? Xbox is clearly one of Microsoft's few success stories, yet it barely contributes to the company's profitability. Moreover, this 3 percent is after you factor in digital media players and mobile computing. Mobile computing is one of the biggest frontiers in technology right now, and the world's largest software maker only has 11 percent of its revenue and 3 percent profit coming from mobile--and that's after it's been combined with Xbox and Zune? Unlike the dismissal of Robbie Bach, this statistic IS surprising. We all know Microsoft is behind, but that behind?

A former boss of mine taught me that it is better to do a few things excellently instead of doing many things well or decently. This law certainly applies here. In the theme of last week's post on how castles of steel in one age crumble to sand in the next, instead of perfecting breakthrough products like Apple and Google, Microsoft's only success in the 21st Century has been a product that while breathtaking, served somewhat as a distraction. Mobile is part of Microsoft's fourth largest division, and Microsoft is fourth in the mobile race. They're not just a distant fourth; they're falling behind quickly. Already, more people around the globe access the internet through mobile devices, and there were almost five billion mobile phones as of the end of 2009. As tablet computers, smart phones, and netbooks rise in prominence, the purpose of the desktop is washing out to sea. Eventually most computers are going to be mobile. Let Microsoft have the desktop. This sluggish bully is going to going to face a difficult situation: either innovate or die.

On other fronts, here are some other things worth reading: