crumas2 said:
MS has over $100 b in cash reserves. Why do you feel they need to recoup their losses in the games division? |
$100 billion? I'm not sure where you got that number from but from their balance sheet the number is not even close to $100B. According to the balance sheet MSFT cash reserve (Cash and Cash Equivalents + Short Term Investments) is "only" $23B.
Here's the link: http://finance.yahoo.com/q/bs?s=MSFT&annual
But I agree that MS does not need to recoup the $7B loss from their Xbox division but the same can be true for Sony. Sony's cash reserve is at $11B (http://finance.yahoo.com/q/bs?s=SNE&annual=) so they should be fine too. The big difference is that Sony will most likely recoup a large chunk, if not all, of the over $2B losses from PS3 while MS has no chance to recoup the $7B at all. Also, please remember that Sony's lifetime PlayStation business is still $2.8B in the BLACK.