Filed under: Launches, Industry, Consumer experience, Competitive strategy, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO)

Yahoo! (NASDAQ: YHOO) is releasing a major upgrade to its search engine technology. The company calls the new version an improvement, but only time can tell whether that is accurate. According to the FT the product promises “more relevant answers to queries and integrates audio, video and photos into its results pages.” Microsoft (NASDAQ: MSFT) and Ask.com have also released similar upgrades to their search products.

Yahoo! almost certainly spent a huge sum of money and precious engineering resources to bring the new product to market, but the company is in the unenviable position of launching a new version of its technology that is not likely to get it any additional marketshare. In other words, the company is running hard to stay in place.

It may be notable that the Yahoo! search improvement comes after those from Microsoft and Ask.com. It is a sign that being first to market in the most profitable part of the internet business is no longer prized because of Google’s (NASDAQ: GOOG) huge lead.

For beaten down Yahoo!, a better mouse trap is not terribly valuable if there are no mice to catch.

Douglas A. McIntyre is a partner at 24/7 Wall St.

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This entry was posted on Tuesday, October 2nd, 2007 at 3:37 pm and is filed under Goog news. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.