This three-page graduate paper examines Windows XP and analyzes how the lack of competition in the PC operating systems market has reduced the incentive of Microsoft to pursue innovation. The author notes that instead of pursuing innovation, Microsoft seems more intent upon using Windows XP as a tool to extend and solidify its dominance of the operating systems market. In the final analysis, Microsoft doesn’t need to pursue innovation because there are no serious competitors to Microsoft software such as Windows XP or Internet Explorer.