These are definitely not desperate times for Microsoft. MS have a pile of money that can ride them through anything.

However, in a downturn Wall St expects some cost cutting and layoffs and if you don't they'll roast you at the next shareholders' meeting and punish your stock price. With Zune, Vista and a long string of cock-ups, Ballmer does not need extra fuel on the barbecue.

The downturn also gives them an opportunity to cut some of their flagging business units without getting egg on their faces. Instead of admitting they goofed, they can just blame the economic crisis.

Ballmer might be a monkey-boy, but he's not a fool. He's hiring up where it matters. These are ideal times to hire as downturns make staff available. Microsoft need to keep developing to have stuff to sell when the economy recovers.