Microsoft recently signed Jerry Seinfeld for a reported $10 million as a part of their $300 million campaign to battle the image of an uptight, uncool, un-hip, un-everything beige-box-loving businessman that Apple cast upon them. The commercials were met with tepid response and further cemented how out of touch Microsoft truly is.

This afternoon, Valleywag broke the news that Microsoft is dropping Seinfeld and spinning a story that the Seinfeld commercial was only phase one of their genius campaign and that phase two will begin shortly.

In a phone call, Waggener Edstrom flack Frank Shaw confirms that Microsoft is not going on with Seinfeld, and echoes his underlings’ spin that the move was planned. There is the “potential to do other things” with Seinfeld, which Shaw says is still “possible.” He adds: “People would have been happier if everyone loved the ads, but this was not unexpected.”

If you’ve seen the commercials, you’ll realize they makes no sense and has nothing to do with anything and are basically a waste of money. A better commercial would have been to mock Apple for saying you are defined by what OS you use. Because that’s the dumbest thing ever. Did you know you can build your own computer and dual boot both Vista and Leopard? Did you know you can do the same on one of those overpriced Apple prefab computers too? What happens when someone does that? Does that make them automatically hipper and cooler than both Apple and Microsoft fanboys? Please tell me, oh gods of computing.