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

[starcraft]

De85 said:

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.

Since those operating losses are also in the past and are equally irretrievable they can be considered "sunk" also. Even if they have totalled $21 billion in losses rather than 6 you missed the point. They are currently profitable, the market is expanding, and they have the assets to continue operations. That means they will keep making xboxes whether you want them to or not.

@starcraft

Thanks for typing all that up, I would have earlier but I got lazy. I too am astounded by the dearth of economic knowledge on these forums.

Welcome