An anonymous reader writes: Microsoft's failures with the KIN phone (only two months on the market, less than 10,000 phones sold) are well-known to slashdot readers, but the New York Times has more. Apparently Microsoft has all but admitted that they have lost young developers to the lures of free software. “We did not get access to kids as they were going through college,” acknowledged Bob Muglia, the president of Microsoft’s business software group, in an interview last year. “And then, when people, particularly younger people, wanted to build a start-up, and they were generally under-capitalized, the idea of buying Microsoft software was a really problematic idea for them.” Others, however, laugh at the idea that Microsoft requires the start-ups to meet certain guidelines and jump through hoops to receive software, when its free software competitors simply allow anyone to download products off a Web site with the click of a button. Is this another sign of the old dinosaur not being nimble enough to keep up with free software?