Microsoft: the great negotiators?

[Bodhesatva]

Griffin said:
The only thing MS is skilled at is showing up at meetings with a sack that has a dollar sign on it.

Money IS negotiating. People in here seem to be saying: "They aren't good at negotiating, they just throw money at stuff!" 

And that is precisely what I mean. Despite all these recent deals with third parties -- Katamary, Guitar Hero, Madden, Grand Theft Auto -- Microsoft is actually making a profit these days. Last quarter was a sizable 150 million, and I strongly suspect that this quarter will see as much or more. If they're making money while still making these sorts of deals with third parties, then it's not as if Microsoft is simply bankrolling people with funds from other divisions anymore. They're investing their video game profits into third party video game ventures, to help drive further video game profits. That's all. 

Here's a simple point: people complain about Microsoft having so much money, but let's compare them to Sony (fair warning: this isnt' intended to be a criticism of Sony, only a vindication of Microsoft). Over the last 4-5 months, Microsoft has actually made a profit (150 million last quarter, probably even more this one), while Sony has lost over 800 million. So, let's start with the premise that Microsoft is throwing their money around like crazy. Fine. Then where is Sony's money going? If Sony isn't "bribing" third parties, then why is Microsoft still able to make a profit in video games, and Sony is hemmoraghing funds? 

And Nintendo is the counter example: they ARE making tons of money, but aren't willing to share it. And I'm not saying they should share it -- business is business, and it's entirely appropriate for a company to tell other businesses to handle their own (as Nintendo is clearly handling their own like no other). But again, clearly there are advantages to sharing the wealth around, and Microsoft is doing just that.