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Microsoft Cuts Back Online Service

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Reuters

Microsoft Corp. said it plans to stop producing entertainment programs for its struggling Microsoft Network online service and focus on more practical offerings. The production cuts affect about 40 of Microsoft’s 2,000 employees in its interactive media group. Microsoft has been shifting its resources toward information-based services and tools since last summer. “Our research shows that with the exception of games, pure entertainment is not what people find most valuable on the Web,” Laura Jennings, vice president of MSN, said in a statement. “What they’re looking for are tools and services that enable them to get everyday things done faster and more easily on line.” The seven online offerings being discontinued include a fictional “soap opera” on people’s careers and music-oriented pages that list top-selling albums and other services. The company said it will focus on such services as its Expedia.com travel service, and online advice in CarPoint and Microsoft Investor. Redmond, Wash.-based Microsoft’s shares fell 56 cents to $85.50 on the New York Stock Exchange.

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