Garnett said:
DirtyP2002 said:
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.
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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.
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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.
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The PS3 is making a profit now, and with the premimum PSN, they will make even more, but they still far away from the $13.7 billion that Xbox makes per year.
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Just a little accounting, they only make profit on the unit when they sell units at a price higher then what they sell them for. This means their perofitability will be based on what Inventory system they use. They will make a profit on Last in, first out, but I doubt an electronics company would use it. Average cost would yeild a lose until most of the higher cost units move out. First in, first out will yeild a lose until they have all system produced at a lose gone. Since FIFO is the most commonly used, it's most likely they are still taking loses.
