MS Office 2010 Sales Disappointing: Report

According to a recent report by tech industry analysts NPD Group, sales of Microsoft's new Office 2010 software have been "disappointing" since its launch several weeks ago. (Source: pcmag.com)

NPD Group says sales of Office 2010 aren't terrible; right now, they're the same as sales for Office 2007. However, they're far below the numbers Microsoft expected, numbers that would have been closer to the sales of Office 2007 in the period after its launch.

Poor Office Sales Could Mean Big Trouble for Microsoft

The slow start is bad news for Microsoft, which earned an enormous sum (approximately $1.5 billion thus far) with sales of its Office 2007 software package.

It's speculated that the problem may be the result of competition from free cloud-computing competitors like Google Docs, which offer users the ability to create and save documents and spreadsheets online for no cost. Microsoft tried a similar tactic by releasing free versions of its programs as a part of Office 2010, but revenue generated won't be sparse in comparison to the retail version. (Source: yahoo.com)

Although one could suggest Microsoft is starving itself with a free alternative to Office, NPD Group says most traditional users of boxed Office software aren't aware of the company's cloud foray. (Source: pcworld.com)

A disappointing start for Office 2010 could mean Microsoft is in danger of losing its long-time lead in this market, where most companies default to programs like Excel and PowerPoint for their business needs.

Minimal Innovation to Blame

Critics says Office 2010 simply doesn't offer enough new features, and can't yet shake users from free programs like Google Docs which ably manage the very basic function of creating and sharing documents. Microsoft may have to either cut the hefty price of its software suite, or face the challenge of building must-have features not offered by rivals.

Both, no doubt, are easier said than done.