No XBOX 720 until at least 2013 or drop out of gaming

[starcraft]

Saiyar said:

starcraft said:
Ok everyone. Those last three posts are from another thread where people didn't understand what a Sunk Cost was and how companies treat them.

HappySquirrel and I put them straight

Do you know what a sunk cost is? You clearly don't know the difference betwen an initial investment (sunk cost as you put it) and operating losses. Do some cheking up and you will find the "sunk cost" for Microsoft Home and Entertainment division is closer to $21 billion.

Clearly, I mistyped, and I apologize for that.

But if anything the fact that the sunk costs are in fact $21 billion+ strengthens my argument. The sheer weight of available assets Microsoft has as a result of these "sunk costs" is enormous. As for the "operating losses," they have been "operating profits" for the last two quarters. Why on earth would Microsoft leave an industry where they have massive assets, a huge potential for growth and operating profits?

I won't get into the relative uniqueness of Microsoft's position and whether the operating losses could still be classed as a "sunk cost."

;)