Microsoft had axed the Virtual PC application. Creating a new version would be too expensive, said Scott Ericson, Microsoft's director of product management and marketing for the Macintosh business unit (see the podcast below).
Creating universal code (a version of the application that runs well on Apple's new Intel systems) would require the company to start all over again, taking up too much developer resources. Meanwhile the competition is heating up with Apple wrapping up Boot Camp (to be integrated in Leopard next spring) and VMware preparing an OS X version of its product.
They are all decent arguments, but it leaves a gaping hole in Microsoft's virtualization strategy.
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