BengaBenga on 14 April 2009
| Megadude said: I am talking about market cap. "MCAP. Market capitalization represents the aggregate value of a company or stock. It is obtained by multiplying the number of shares outstanding by their current price per share. For example, if XYZ company has 15,000,000 shares outstanding and a share price of $20 per share then the market capitalization is 15,000,000 x $20 = $300,000,000. Generally, the U.S. market recognizes three market cap divisions: large cap (usually $5 billion and above), mid cap (usually $1 billion to $5 billion), and small cap (usually less than $1 billion), although the cutoffs between the categories are not precise or fixed. In our example above, XYZ would be considered a small cap company. also called market cap." Ok so if you want to get into semantics: Microsoft is 100 BILLION dollars less valuable then it was only 2 years ago. So my question to you is: How many Microsoft employees should be laid off to come up with the magical 200 million dollars for all these exclusives? http://www.worldboxx.com/2009/03/17/microsoft-getting-ready-to-lay-off-17-of-staff/ http://www.huffingtonpost.com/2009/02/24/microsoft-outlook-dreary_n_169594.html http://blogs.zdnet.com/Google/?p=1193 http://www.pocket-lint.com/news/news.phtml/19659/20683/Microsoft-Windows-losing-share-Apple.phtml |
You can't use market cap that way. It doesn't say anything about the liquidity of Microsoft. It's simply the perceived value of the company.
200 million is probably not an extreme amount of money for Microsoft, the problem is that these games aren't worth that amount of money and that gaming isn't MS's core business. If Microsoft thought that they could make a nice ROI on investing 200 million in these games they would do it.
