Microsoft Cannibalizes MSN; Bing Still Losing Money

Microsoft stands accused of redirecting a significant amount of MSN-related searches to Bing, thus increasing Bing search results by a substantial margin and leaving MSN search trends to be grossly misrepresented.

The logic behind this decision is to present one impressive search figure to would-be advertisers instead of having two mediocre search figures under the same banner. Reports suggest that the number of MSN headlines that lead individuals to Microsoft's Bing search engine has jumped between 20 and 50 per cent this past quarter. (Source: ditii.com)

In a recent statement made to USA Today, Microsoft CEO Steve Ballmer expressed his knowledge of the new campaign saying, "We're doing programs that go from MSN to Bing and constantly making different bets to see how things play out. We're (also) experimenting with new landing pages."

'Fierce' Internal Rivalry

While it's true that Microsoft has full control over both divisions, it doesn't mean that the move hasn't ruffled a few feathers within the company. Apparently, the decision to prioritize Bing over MSN has led to what is becoming known as a "fierce" internal rivalry.

As one insider affirmed, "it's warfare between the ad sales folks and the people at Microsoft headquarters in Redmond." (Source: slashgear.com)

Microsoft Revenue Up $20 Billion; Bing Still Losing Money

In a recent story, Microsoft released statements regarding fourth quarter revenues yesterday, which beat Wall Street expectations. The Redmond-based company reported plenty of positive news regarding its revenues, profits and products, including Windows 7, the Xbox 360 Kinect, and MS Office.

That said, online services including MSN and Microsoft's Bing search engine posted a $543 million dollar loss -- up from $463 million a year ago. Surprisingly, the company is expected to lose $2 billion for the year in these divisions, yet ad revenues are up a whopping 23 percent. (Source: searchengineland.com)