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Quote of the day: Microsoft's retail market 'is poor'

Authors of an internal strategy paper see a drop in the company's worldwide sales of full packaged software.

In a story about a predicted decline in Microsoft's consumer revenue and the possibility of making applications into free, ad-supported releases, an internal Microsoft strategy paper has documented a drop in sales of full packaged software.

"The outlook for packaged consumer retail software market is poor," MSN workers said in the paper. "The size of the market is shrinking, and consumers appear less willing than ever to buy software applications off the shelf."

Worldwide sales of full packaged software--which includes Works, the Encarta encyclopedia, digital imaging software and Money--dropped by 7 percent in fiscal year 2004, the paper says, noting similar trends for fiscal 2005. Click here for full story.