Microsoft Corporation (MSFT): Should The Company Kill Windows 8 Immediately?

Microsoft Corporation (NASDAQ:MSFT) Windows 8 is totally killing the PC market. As if PC shipments weren’t already stagnating, Windows 8 just knocked unit volumes down for the count.

The 14% decline in the first quarter that IDC estimated is the worst quarterly contraction in nearly 20 years. There were initial indications that Windows 8 wasn’t taking off, such as when IDC pegged fourth-quarter PC units at negative 6.4%. The new operating system was released about a month into that quarter, so it was fair to say then that Windows 8 maybe just needed some time. It was simply too early to call it for sure.

Well, we can now call it for sure: Windows 8 has bombed. Don’t just take my word for it. IDC’s Bob O’Donnell makes it quite clear:

At this point, unfortunately, it seems clear that the Windows 8 launch not only failed to provide a positive boost to the PC market, but appears to have slowed the market. While some consumers appreciate the new form factors and touch capabilities of Windows 8, the radical changes to the UI, removal of the familiar Start button, and the costs associated with touch have made PCs a less attractive alternative to dedicated tablets and other competitive devices. Microsoft will have to make some very tough decisions moving forward if it wants to help reinvigorate the PC market.

Windows 8 was a huge risk. It was a risk that Microsoft Corporation (NASDAQ:MSFT) needed to take in the face of lackluster global PC shipments, but after five months on the market, the data show that consumers just aren’t buying into Microsoft’s vision, literally and figuratively. Users want the Start Menu back; some certified technicians even offer services to downgrade brand-new PCs back to Windows 7 (that’ll be $125, please), allowing users to go back to the familiar interface and embrace of that OS.

Should Microsoft just kill Windows 8 immediately in order to minimize the damage it’s doing to the PC market? That’s not likely, considering how much time and money the software giant plunged into developing it. That would be about the toughest decision Microsoft Corporation (NASDAQ:MSFT) could make.