UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                  SCHEDULE 13G

                   Under the Securities Exchange Act of 1934
                                Amendment No. 1


                              General Magic, Inc.
  --------------------------------------------------------------------------
                               (Name of Issuer)


                                  Common Stock
  --------------------------------------------------------------------------
                         (Title of Class of Securities)


                                   370253 10 6
  --------------------------------------------------------------------------
                                 (CUSIP Number)


                               February 14, 2001
  --------------------------------------------------------------------------
            (Date of Event which Requires Filing of this Statement)


                                 John Seethoff
               Associate General Counsel, Finance and Operations
                               One Microsoft Way
                        Redmond, Washington  98052-6399
                                (425) 882-8080
  --------------------------------------------------------------------------
                 (Name, Address and Telephone Number of Person
               Authorized to Receive Notices and Communications)


Check the appropriate box to designate the rule pursuant to which this schedule
is filed:

[ ]  Rule 13d-1(b)
[X]  Rule 13d-1(c)
[ ]  Rule 13d-1(d)

*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).


CUSIP No.  370253 10 6
- --------------------------------------------------------------------------------
1.   Name of reporting person S.S., or I.R.S. Identification No. of above person
     Microsoft Corporation 91-1144442
- --------------------------------------------------------------------------------
2.   Check the Appropriate Box if a Member of a Group (See Instructions)
     (a) [ ]
     (b) [ ]
- --------------------------------------------------------------------------------
3.   SEC Use Only
- --------------------------------------------------------------------------------
4.   Citizenship or Place of Organization
     State of Washington
- --------------------------------------------------------------------------------
                         5.  Sole Voting Power
                             2,874,000
Number of                -------------------------------------------------------
Shares                   6.  Shared Voting Power
Beneficially                 -0-
Owned by                 -------------------------------------------------------
Each                     7.  Sole Dispositive Power
Reporting                    2,874,000
Person With:             -------------------------------------------------------
                         8.  Shared Dispositive Power
                             -0-
- --------------------------------------------------------------------------------
9.   Aggregate Amount Beneficially Owned by Each Reporting Person
     2,874,000
- --------------------------------------------------------------------------------
10.  Check if the Aggregate Amount in Row (9) Excludes Certain Shares [ ]
- --------------------------------------------------------------------------------
11.  Percent of Class Represented by Amount in Row (9)
     4.70%
- --------------------------------------------------------------------------------
12.  Type of Reporting Person
     CO
- --------------------------------------------------------------------------------


Item 1.

(a)  Name of Issuer:  General Magic, Inc.

(b)  Address of principal executive offices of the Issuer:
     420 North Mary Avenue
     Sunnyvale, California 94086

Item 2.

  (a)  Name of Person Filing:  Microsoft Corporation, a Washington corporation

  (b)  Address of Principal Business Office:  One Microsoft Way, Redmond,
       Washington 98052
       Attention: Associate General Counsel, Finance and Operations

  (c)  Citizenship:  State of Washington.

  (d)  Title of Class of Securities:  Common Stock

  (e)  CUSIP Number:  370253 10 6



Item 3.  Not Applicable.

Item 4.  Ownership

  (a)  Amount beneficially owned:  2,874,000

  (b)  Percent of class:  4.70%

  (c)  Number of shares as to which the person has:

       (i)   Sole power to vote or to direct the vote:  2,874,000

       (ii)  Shared power to vote or to direct the vote:  0

       (iii) Sole power to dispose or to direct the disposition of:  2,874,000

       (iv)  Shared power to dispose or to direct the disposition of:  0


Item 5.  Ownership of Five Percent or Less of a Class:  Not Applicable.

Item 6.  Ownership of More than Five Percent on Behalf of Another Person:
         Not Applicable.

Item 7.  Identification and Classification of the Subsidiary Which Acquired the
         Security Being Reported on By the Parent Holding Company:
         Not Applicable.

Item 8.  Identification and Classification of Members of the Group:
         Not Applicable.

Item 9.  Notice of Dissolution of a Group:  Not Applicable.

Item 10. Certification:  By signing below I certify that, to the best of my
         knowledge and belief, the securities referred to above were not
         acquired and are not held for the purpose of or with the effect of
         changing or influencing the control of the issuer of the securities and
         were not acquired and are not held in connection with or as a
         participant in any transaction having that purpose or effect.


                                   Signature

After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.

                                            February 14, 2001

                                            MICROSOFT CORPORATION

                                            By /s/ Amar Nehru
                                            ----------------------
                                            Amar Nehru
                                            Corporate Development
                                            Vice President