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CNN Live At Daybreak

Following Ruling, Microsoft Users May See Changes

Aired June 29, 2001 - 07:05   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BRIAN NELSON, CNN ANCHOR: Justice Department attorneys are considering whether or not to appeal the latest Microsoft decision to the Supreme Court. A federal appeals court yesterday overturned the ruling ordering the breakup of the software giant. The Appeals Court says that District Court Judge Thomas Penfield Jackson gave an appearance of bias against Microsoft. The court ordered the case to be reconsidered by another judge.

What does the Microsoft ruling mean for you, the computer owner?

As CNN's James Hattori now reports, consumers could see some long-term changes.

(BEGIN VIDEOTAPE)

JAMES HATTORI, CNN CORRESPONDENT (voice-over): Microsoft's dominance on personal computers...

TIM BAJARIN, COMPUTER INDUSTRY ANALYSTS: At the operating system level, they own 90 percent of the market.

HATTORI: ... is not likely to change, according to industry analyst Tim Bajarin.

BAJARIN: From the consumer standpoint, you really won't see any change at all, because, in the short term, the next generation of Windows, which is Windows XP, is just about to come out, and that was already cast in stone.

HATTORI: But will Microsoft now be able to dominate areas like video games, personal digital assistance, or software for Internet cell phones.

BAJARIN: The telecommunication industry is more than likely not going to just let Microsoft walk in and take over. The consumer electronics industry is not going to let Microsoft take over. So there are still some checks and balances in competition that would thwart Microsoft to some degree.

HATTORI: Bill Gates and company insist software for the next generation of Internet devices is a big focus, but get ready for a new way to pay for it.

BAJARIN: The market's going to change dramatically in the next three to five years in that a lot of the applications are going to be rented as opposed to bought off the shelf, and the way you'll do that is through some kind of license and subscription that always gives you access to that application, whether it be a next generation encyclopedia or a next generation word processor.

HATTORI: What may not change is Microsoft's reputation among consumers.

BAJARIN: If you really like Microsoft products, and you use them, and you have no problem with Microsoft, it's business as usual. If you didn't like Microsoft and you felt they were going to be a big threat, it's probably even bigger than before.

HATTORI: James Hattori, CNN, Santa Clara, California.

(END VIDEOTAPE)

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