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I don't think this is surprising - the top management seems more interested in building OSs and social networks. Search doesn't seem like their highest priority anymore.

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There's more people working on search quality than ever in our history. The PR team for search quality does a great job pitching stories about search quality, how it's hard, etc., but lots of reporters prefer to write about the shiny things (or more tangible things--you can hold a phone in your hand) rather than improving search quality.

But Google continues to work hard on improving search every day, even if that doesn't always get covered.

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