Microsoft has come to realise the dawn of a new era. It was once that Microsoft had to fight it out at the instance of the Competition Commission and face sanctions under the stringent Monopoly provisions of the law. Being termed a Monopoly and feared by competition is luxury. Now, it’s not a bed of roses anymore.

For starters, Microsoft posted a 17% drop in revenue and a steep fall in sales for the second Quarter. And the software giant doesn’t seem to be too happy about its prospects for the rest of the year as well.

But that’s not to underestimate the strength or depth of a powerhouse that has revolutionized life in more ways than one. Just that life for the blue chip is not as easy as it once used to be. The company may have been complacent about the onslaught of the new age, swift e-commerce players as it kept its focus on personal computing for a little too longer. That put Microsoft on the defensive against the sleek, agile Google in its internet business and specifically, search technology.

The temperament at Microsoft is visible in the way it has changed its pricing structures and product strategies. What differentiated it from the rest of the businesses and industries were its luxurious margins. It is now entering into the tight space of slender margins and high turnover. Microsoft would now make some of its applications on the tap solely supported by Advertisers, while it would have its paid packages as usual. There are applications that would be charged on a monthly basis too, such as the e-mail programme exchange. Profitability would take a mighty hit in this on-line stream. The catch would be, however, in driving the turnover so high that at a critical mass, all that would come in would be pure profit.

Windows 7 OS is getting ready to hit the market in October. The real news is, it is being priced at $40 lesser than its predecessor Vista. Now, that’s not what you would have normally expected out of Microsoft!

The company is aggressively cutting prices on its Office suite, especially in China and in India. The idea is to take piracy head on and make people stick with the original, reliable Windows at reasonable prices. Sure, Microsoft would be having one eye on “Chrome” from Google, which it may overtly be dismissing as a joke.

Microsoft is not one to take its business light. It has created an empire and the current top guns have a legacy to leave!