Surrendering before the superb growth of Wikipedia and other free reference sites, Microsoft Corp. has decided to ring the curtain down on its Encarta encyclopedia. The Redmond, Washington based software giant, Microsoft has announced that it is planning to shut down its Encarta encyclopedia business later this year.

In a notice posted on its MSN website, Microsoft has said, "Encarta has been a popular product around the world for many years. However, the category of traditional encyclopedias and reference material has changed. People today seek and consume information in considerably different ways than in years past."

Microsoft has stated, "as part of our goal to deliver the most effective and engaging resources for today's consumer, we have made the decision to exit the Encarta business."

Microsoft has said that it would stop selling Encarta software products by June. The company has said that it will stop marketing Encarta editions that it offers on discs. The software maker has notified that it will close Encarta websites worldwide, except Encarta Japan, on October 31; the Encarta Japan will be discontinued after December 31.

Microsoft has recently been trying to cut costs. The company recently cut 5,000 jobs and announced that profit and revenue would fall over the next two quarters. Microsoft's decision to shut down its Encarta business appears to be the part of its "cut costs" strategy.