In an article from PCWorld called Microsoft's Top Three 2008 Mistakes, Shane O'Neill of CIO.com discusses some of the things that went well for MS, and some that clearly did not.

In spite of aggressive marketing by Apple, Mac sales fell 1 percent over the year and Windows PC sales were up 7 percent. Microsoft's grip on the PC market remained firm - with 90% of users running Windows, and 70% of internet browsers using Internet Explorer.

One has to think that the bad press MS keeps getting will have to impact these market shares eventually. Although it sure seems like both Apple and Firefox do not understand that their elitist attitude ("we're so much better and smarter than the other 90% of you") is an implicit criticism of the very customer they are trying to reach.

2009 will be a pivotal year for MS as they continue to try to beat off Apple, Google and Mozilla (Firefox).

According to the PC Word article Microsoft's biggest mistakes for 2008 were:

1. Poor marketing of Windows Vista - They've been letting Apple get away with bashing Vista for years now. It's just not as bas as the critics say it is, and MS's own lack of promotion reinforces the idea that the critics are right.

2. Letting Apple Build Anti-Vista Momentum - Even though the sales figures may not yet show it in a convincing way, Apple has taken the marketing game away from MS with their constant Vista-bashing. MS has not shown that it can adequately respond. Expensive ads featuring Bill Gates and Jerry Seinfeld missed the mark. Just recently I saw an ad touting the unique features of Vista in a straight-ahead way. It's about time.

3. The Failed Yahoo Bid - Early in 08 the bid for Yahoo looked like it might be a case of two search losers getting together. The failure of the bid did nothing for MS's image as a "winner" or a company forging into the future.

As it turned out it was probably good for MS that Yahoo rejected their offer. Now Yahoo is worth a fraction of what MS offered, Jerry Yang, the big Yahoo opponent of the bid is gone, and new Yahoo investors are now courting MS.

MS is still interested in Yahoo's search business, and may very well end up with it in 2009.

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