Why a long recession is good for Microsoft

1) Credit crunch will weed out a lot of startup that provide "free" software/service, because they needs to generate positive cashflow sooner than they had planned.
2) Weak economy will tighten the advertising budgets, therefore hurting Google's cashcow. Google will have to cutback on its investment in challenging MS's desktop applications.
3) Weak economy will push Yahoo over the edge and into MS's arms at a much lower cost than MS was originally planning to pay.
4) MS is sitting on a lot of cash, which is a becoming more and more scare resource. They have more leverage in buying out competition or launching campaigns against its competitors (read Apple).
5) With high unemployment, MS can find the much needed talent they wouldn't have seen on the market during booming years.