| TheSource said: Barring fundamental changes in their main businesses, Nintendo and Microsoft are always going to be profitable though. Sony used to always profit as well, but the company is losing to competitors in alot of core businesses and has been hurt by the economy. |
but is not just profit that concerns microsoft, it perception in the overall market. for the first time in a long time MS is being labeled as a sell stock based on the failure of getting corporations to switch to Vista, The continued blunders in the web search/ad trade , the lack of penetration with its mobile devices, and perceived poor development of mobile OS support. If this starts to effect stock seriously (it has not yet) it could hinder MS development in the gaming area, you point out in your next post you feel MS is no longer willing to sacrifice for the entertainment arm, but the entertainment are will continue to have huge and exasperatingly huge losses. Most of these losses will be tied up in the pushes to advance mobile OS which though growing in overall phone base, is not the dominant formate MS needs it to be. the surfaces initiative which if you watch its evolution its clear they have dumped ridiculous amount of money into it with no real return yet, though they are working to integrate it into windows 7. the windows store budget will come out of here too and thats going to be a sinkhole for a bit.
basically MS needs windows 7 launch to exceed expectations, to keep share holders happy if that is done they can continue to drop tones of money into the entertainment division without investors demanding cuts or demanding to know whats going on line item there. cause they will be using this division again to hide the true cost of all of their projects not relating to core business. heck we could have the 360 and its line making record profit and never know about it .... though i do feel MS would brag about that
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