There is an Oscar winning film directed by Ron Howard, titled “A Beautiful Mind,” where mathematician John Nash develops his Nobel Prize winning game theory. It seems Microsoft may have taken a page out of the game theory playbook as it is developing an alternative competitive strategy that will eventually help Microsoft crush Google.

Bill Gates (founder and Chairman of Microsoft) recently spoke at the University of Chicago, and I was most interested in two of the themes in his presentation. One, Mr. Gates emphasized the huge opportunities in the poorest two thirds of the World which are largely ignored today. Two, he discussed the development of new natural user interface tools (e.g. touch screens, pens, speech recognition, and cameras) that will eventually become as much a part of Internet life as the mouse and keyboard are today. I believe it is these two themes that will allow Microsoft to capture enough data and Internet traffic to eventually develop a search engine that will de-thrown Google.

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