Microsoft? A loser!

Microsoft is now the underdog to Google in the game of technology world domination.

The software giant faces growing competition in its core software business, which dominated the industry for two decades, and it hasn’t had a bottom line-galvanizing success in any other area recently. It was late to online advertising, letting Google all but run away with that sector. It hasn’t had a big Web 2.0 hit yet.

When the bombastic CEO of Microsoft, Steve Ballmer being asked if he thought Google’s word processing and spreadsheet applications were good, he was blunt: "No, I don’t."

Microsoft has been criticized for getting into online search and advertising late and with services that weren’t quite ready for prime time. But Ballmer said he’s not upset and knows it will be a long haul to go head-to-head with Google.

And what about Microsoft’s rumored offer on the table for Yahoo!? Industry observers think the deal makes sense since Yahoo! would give Microsoft instant heft in search technologies. "That may or may not make sense to us or to Yahoo!" Ballmer said. "We believe in our independent path. We like what we’re going. If you talk to Jerry at Yahoo! he’d say they like what they’re doing."

For the past year, the company’s stock has waffled in the high $20s. It closed on Thursday, Oct 18, at $31.16. The stock hasn't been north of $32 since 2003. And there’s nothing like a new blockbuster product or service to lift share price.

MSFT currently worth $292.96 billion while GOOG at $199.65 billion.

A 32 year-old adult versus a 9 year-old boy... the battle is interesting!