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Examines the antitrust case involving Microsoft Corp. in Europe, focusing on the market for digital media-player software. Claims of European regulators regarding Microsoft's presence in the desktop software market and competition within the software industry; Number of device manufacturers and software companies that run software using Microsoft's Windows Media Audio (WMA) as a standard; Comments from Mark Mulligan, senior analyst at Jupiter Research, regarding the computers users' preference for ease in computing.

Profiles Sun Microsystems Inc., which is facing competition in the computer industry because the quality of their computer chip is now being matched by other companies. Percentage decrease in Sun's quarterly sales as the result of Intel Corp.'s improved chips and cheaper software from Microsoft Corp. and free Linux software; Share price of Sun stock, after experiencing losses in seven of the last nine quarters; Discussion of Sun's business strategy to eschew standardization; Computer sales figures, indicating the Sun is falling behind many of its competitors.

Assesses the impact of computer viruses and worms, which could result in companies switching to a non-Windows operating system. Discussion of the concept of "day-zero" attack in which a sophisticated computer hacker exploits a flaw in computer software undetected by the software's maker; Comments from Mark Dickelman, chief information officer of Anexsys LLC, regarding a movement within industries away from Microsoft Corp.'s Windows operating system; Number of viruses and worms launched against Microsoft in 2003, according to antivirus software maker Symantec Corp., indicating that it is good news for Microsoft rivals such as Apple Computer Inc., Sun Microsystems Inc. and Lindows.com Inc.; Number of viruses and other malicious code incidents on non-Microsoft operating systems, suggesting Microsoft is a target for many hackers.

Reports on the move of Microsoft Corp. to delay the release of update for its Office Suite computer software.

The article reports on a Microsoft Corp. project code-named Origami that involves various partners to build services and software for a portable entertainment device in 2006.

Evaluates Microsoft Corp.'s free utility, MSN Search Toolbar With Windows Desktop Search, an add-on to its Internet Explorer software. Description of features, such as tabbed Internet browsing and comprehensive hard drive searching; Comparison to the integrated tabbed browsing and desktop search features of other products, such as Apple Computer Inc.'s Tiger operating system and the Firefox Web browser.

Reports Microsoft Corp. has failed in last-minute negotiations to reach an accord on its business practices with European antitrust regulators and could face rulings that affect the way it sells software for an array of products, from servers to mobile phones. When the European Commission (EC) is expected to order Microsoft to offer versions of its Windows operating system without its Media Player software and release information related to Windows to allow rival companies, like Sun Microsystems Inc. and Novell Inc., to create software that will run as well on Windows as Microsoft's own software; View of author that the EC's ruling will extend far beyond Europe and the pact Microsoft agreed to in a 2001 settlement in the U.S.; Discussion of the settlement negotiations between Microsoft's Steve Ballmer and the EC's Mario Monti.