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Microsoft Pri0

Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times technology reporter Matt Day.

July 28, 2006 at 10:58 AM

Glaser: Microsoft has abandoned its partners

Microsoft’s decision to control the hardware and software for its upcoming Zune media player shows the company has “thrown the baby out with the bath water,” Chief Executive Rob Glaser said Thursday during the company’s earnings call. That could send some of Microsoft’s previous hardware partners over RealNetworks’ way, he added.

“The fact that Microsoft has in effect abandoned all of these guys and said, ‘Hey, you know, we’re doing it ourselves. We’re going to follow the Apple/iPod model, the Xbox model,’ we think is a great gift from them and we’re grateful for it and we intend to fully capitalize on it.”

Glaser said that RealNetworks will prove that it is possible to deliver a total music package “without one company doing everything.” That’s a big promise, considering that so far neither RealNetworks nor anyone else has managed to draw a significant share of the market away from Apple.

Other details from RealNetworks’ second-quarter earnings call:

Profit was $38.9 million, or 22 cents a share, up from $4.71 million, or 3 cents, a year earlier. Sales rose 8.1 percent to $89.4 million. About $35 million in the results came from a Microsoft antitrust settlement payment to the company.

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