| Legend11 said: As I said the money was set aside, the repairs are already paid for. Newer systems are more reliable than older ones and it's pretty obvious that as the components become smaller the problem will completely disappear (if it's not already gone now with the newer systems). As for people not wanting to upgrade their operating systems that will obviously change over time as newer PCs have more memory, more powerful cpus and gpus, etc. |
By that logic, you could set aside the cost of production, or you could build a huge stockpile of hardware and then sell it for a profit in another quarter, and show a profit. Even though you're just hiding your costs.
Don't be fooled by misleading accounting practices. The repairs cost money every day.
Regardless of that individual point, this is the writing of a professional over at Motley Fool. His biggest issue isn't with the ongoing repairs (a million Xbox 360s in a quarter was MS' expectation?!), but it was with the Vista uptake and with Microsoft's key competitors consistently outperforming Microsoft.
