Microsoft Earnings Tonight
As much as I like Microsoft products, I don't think they are innovative enough to compete with other companies such as Apple and Google. Microsoft keeps on releasing new versions of their software but doesn't really add anything new to them. For example, I still prefer to use Windows XP and Office 2003 instead of Windows Vista and Office 2007. There is no point of upgrading if there is no improvement over previous versions.
In terms of video game consoles, most gamers prefer Sony PlayStation 3 rather than XBOX 360, due to the wide availability of games and better hardware in general. As for the music industry, Zune is still behind Apple's iPod in terms of sales.
For some reasons, it seems that many investors are overly optimistic about Microsoft earnings. IMO, Microsoft wouldn't miss the estimates but it won't be spectacular either. When Microsoft announced its plan to acquire Yahoo, it sounded like Microsoft wants to expand into the online industry, to compete with Google. Although it is a good thing to look for new opportunities, Microsoft should be more concerned about its core business (software) first.