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MrBubbles said:
microsoft is still looking into buying yahoo for 10s of billions of dollars...so i'll believe it when it happens.

Ok, this makes sense then.  Buy Yahoo, and then gut the departments you have that match up with what Yahoo has.

In regards to cuts, it would make sense Microsoft would consider some possible contraction.  We may also look at the next gen XBox console to get delayed awhile.  Sony does the same, and then Nintendo happens to jump in with the gadget controller and high def graphics.