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IBM Surges Ahead of Microsoft in Market Value

Microsoft used to be the most valuable tech company in the U.S. based on market capitalization. Apple took that crown away last year. Now, IBM has dropped the Redmond, Wash., giant into third place. So what's IBM doing right, and what's Microsoft doing wrong?

No, the iPad Is Not Killing Microsoft's Business

Investors are buying into the meme that Windows is dying -- and therefore Microsoft is as well. While tablets are clearly cutting into the giant's core PC business, Microsoft is also showing remarkable agility in building new franchises for the future, the Kinect for one.

Xbox Shortages May Run Through February

Microsoft sold out of its Xbox video-game console in late December thanks to strong holiday-season demand, and may have product shortages in January and February as well, as the company's Kinect motion-sensor device has boosted the popularity of the system, the Seattle Post-Intelligencer reported.

Hulu Drops Price on Subscriptions After Traffic Dips

Hulu lowered the price of its newly launched Hulu Plus subscription service by $2 to $7.99 Wednesday, just days after the online streaming video service saw its rank decline on a closely watched Internet ranking service for the month of October.

Game Over: Why the Console Business Is Doomed

Video-game console makers apparently think their business will be saved by motion-sensing technology that would let you play Madden NFL 11 by running around your living room. Sorry, guys: Smart phone, social network and cloud-based games are going to drink your milkshake.

Best Buy Earnings Disappoint Despite Gross Gains

Best Buy posted disappointing first-quarter results this morning, falling well short of analysts' expectations. Cautious customers lifted the retailer's overall U.S. sales by 5%, but lower sales of TVs, video games and movies cut into its profit margins.