Williams suffered a quarterfinal Tier IV loss at Hobart to a player ranked outside the top fifty to begin 2007. She then entered the Australian Open ranked 81st in the world and somewhat doubting herself. Only two weeks later however Williams had defeated the world number one Russian Maria Sharapova 6-1, 6-2 in a brief 63 minutes championship match. With Serena hitting her forehands harder than Maria's serves, Sharapova never stood a chance against Williams' power baseline game.

In the months to follow Williams would again defeat Sharapova and the new world number one, Justine Henin of Belgium at Miami, but then play well below her abilities due to assorted injuries and some would say disinterest in the game. Williams saw her own ranking slip with her playing only part-time tennis, which then resulted in lower seeds in the grand slams and finally quarterfinal losses to Henin in all three remaining grand slams. After withdrawing from several tournaments due to knee injury late this year, Williams did play the WTA Tour Championships, only to retire down 4-6 in her first match and subsequently withdraw from the tournament.

One positive sign that Serena may be better soon physically is Williams has entered the Australian Open doubles with her sister and Wimbledon champion Venus Williams. Although the entry more than likely is an attempt by the sisters to secure a doubles position on the 2008 American Olympic team, in addition to their positions on the team in singles.

Interesting to note is Serena being the reigning singles champion will be defending 1000 points, while Venus will have no points to defend since she skipped the event in 2007 due to her own wrist injury. Whatever their reasoning for entering the Melbourne doubles, at least should the Williams sisters both make it down under in a few weeks time, they would each have the other sister to inspire and motivate the other; which could mean championship form from both sisters.