Investors to Microsoft: Drop the Xbox

[DirtyP2002]

Acevil said:

Hephaestos said:

i'm sorry but who are the investors in question here? the board of MS holds most of the stock and I doubt any major shareholder needs to be in an article to get their points heard by MS...

 

Also this article is ignorant to the notion of sunk cost. you make strategic planning on the future gains, not on the past losses (all you do for that is fire executives). Xbox is profiatable -> article is retarded.

Actually in the past view weeks, you see the stock price falling for the Microsoft (one reason why Apple now has a higher market cap) and this happened because of the Xbox Entertainment Department not showing any real growth. (mostly regarding mobile phone OS and microsoft's zune.)

Investors are not looking at costs, they are looking at growth potiential and really the Entertainment brand doesn't seem to have that much flare.

 

• MS shares are up YoY
• The bolded part is not 100% true. You think the Windows division has more growth potential? They already have a market share of 90%. There really is not much more growth potential without expanding computers worldwide.
• The EDD has an insane potential. There is no reason why the next Xbox can't be as successful as the Wii or the Windows Mobile 7 series won't be a great success or even a gaming platform like the DS. I mean, why not? Imagine how huge MS would get with a EDD division as big and profitable as Ninentendo is now.
• The biggest potential surely is Xbox Live. More than 23 million members, 60% of them paying $50 per year is serious business. 700 million USD per year really is a market you can work with. Think about it, in this generation MS will make 1 billion USD per year just with XBL fees. And with more Xbox 360s sold and with more XBL users the marketing aspect will grow rapidly. And XBL is a social network MS owns 100%. The XBL integration on Windows Mobile phones really is a plus. Same for the Zune marketplace. There is a lot of potential.

This is no trolling, but the PS3 was a financial nightmare. It really was and is. It might be a great console with great games, but just looking at the financials, it was a flop. Same for the PSP Go btw. So as long as Sony stays in this business, there is no need to believe MS will leave.