In what is hardly surprising news, the Big M apparently decided to pull out of the gig after concerns about the rather edgy material contained in the Family Guy Presents: Seth and Alex's Almost Live Comedy Show.
The deal had left us at Stuff Towers scratching our heads as to how it would all work – the episode was not said to just bear the Windows 7 logo, but that it would contain Windows 7-promoting material as well. It didn't exactly seem like the most perfect pairing.
On pulling out, the company stated that "the content was not a fit with the Windows brand".
It does make you wonder if anyone from Microsoft had actually watched a Family Guy episode before signing up with Seth MacFarlane, or if they'd just heard it was what the kids were watching these days.
Family Guy content was never a fit with the Windows brand from the start, it just seemed to me like a poor attempt at trying to make Windows "cool".
The show is still set to run in the States on the 8 November, complete with its Microsoft-scaring jokes about deaf people, the Holocaust and incest but sans Microsoft 7 references.
Despite the palava though, Gates' people insist the company's relationship with MacFarlane et al is still rosy.
It said in a statement: "We continue to have a good partnership with Fox, Seth MacFarlane and Alex Borstein and are working with them in other areas."
Do you think Microsoft made the right decision? Let us know below.