[apu]

Do you really think that MS is in trouble because they focused on non-core ventures?

If anything, I'd say the complete opposite: they're in trouble because they're not good at focusing on the web, which is a major non-core venture for them (I think MS Windows & Office are their bread & butter).

Fundamentally, MS never "got" the internet, and they have too much weight to maneuver effectively now.

[ams6110]

They are in trouble because they are in so many things that doing something good in one niche will cannibalize sales in another niche.

Make a killer web office suite? Kills off sales of Office and Windows. Make a great webmail site? Kills off Exchange and Windows Server sales.