There are quite a few things that I would change in general:
1) Stop creating multiple versions of the same operating system. XP is by far one of their greatest operating systems, and I do not see why they would need/want to focus on multiple versions. Indeed, Vista and Windows 7 will all be the same at the core level, but it is pretty ridiculous.
2) Stop bothering with so many patents.
3) Start supporting open source.
4) Stop being lazy and "all-powerful."
5) Become more involved with the community of Windows users and find out exactly what they want. Putting unneeded things into operating systems is obviously unneeded.
6) Reestablish technical support in the United States, rather than India. It is difficult to talk to someone from India, and it would be really nice if each country had their own support center for their own country.
7) Stop rushing new versions of Directx. They are talking about Directx 11, and DX10 hasn't even gotten off the ground much. Why? Because gamers would have to use Vista, which is of course the main reason. And number two, it means buying a lot of new hardware/software. And three, there are practically no games on the market that support DX10.
8) Charge less for operating systems and other business/school related software. It is a shame for Microsoft Office to be upwards of $120 for a STUDENT version. I am in college and would have gladly gotten Microsoft Office, but at that price? No way! Open Office is great for me, and anyone reading this should check it out.
9) Get rid of Steve Ballmer. He is not a good CEO, and he is giving the company a bad reputation with the way he acts. Just search youtube and you can see some of the things he has said and done.
- Xbox division
I personally do not own an Xbox 360, but I do own an original Xbox. Microsoft is obviously the newest kid on the block as far as consoles go, but they have done a pretty good job with the 360. I am still hesitant to purchase a 360 because I read/hear all the time about the "red ring of death" occurring to so many people. Hardware failures can happen to anything, but I really think they have a problem with theirs. Maybe a little bit of long term testing under variable conditions would help? Do a little bit of PR and find out what people want in a console? There is a such thing as mixing hardcore/family friendly games together on one machine at a family friendly price.
- Windows operating system
I enjoy using Windows XP, but this will probably be my last operating system from Microsoft if I do not see an improvement with Windows 7, of which everyone is so "excited" about. I do not see why they are so excited! It's Vista in a nutshell!
- Online search
They should just give up on the online search. Google is far superior, and I cannot imagine Microsoft ever winning. They think they are the best at everything even when they are getting stomped, which is part of their problem.
I have never used or owned a Zune, but I have heard good things about them. Just make them affordable is about all I can say.
- Internet Explorer
Create an entirely new browser - from scratch. Internet Explorer + any computer = surefire death. It is TRASH, and it does not hold up against the evil of the internet. It is not secure, and it has more holes in it than Swiss cheese.
Seems decent, but overpriced. I do not care much for the new 2007 version. My dad had bought Powerpoint 2007 once, and I had been using Powerpoint 2003: I said, "Take it back". Unfortunately, that is not at all possible, so we were out of the money.
Microsoft doesn't even use their own server products; they use Linux. That explains it 100%.