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Forums - Microsoft Discussion - Investors to Microsoft: Drop the Xbox

Acevil on 09 June 2010
DirtyP2002 said:
Acevil said:
Hephaestos said:

i'm sorry but who are the investors in question here? the board of MS holds most of the stock and I doubt any major shareholder needs to be in an article to get their points heard by MS...

 

Also this article is ignorant to the notion of sunk cost. you make strategic planning on the future gains, not on the past losses (all you do for that is fire executives). Xbox is profiatable -> article is retarded.



Actually in the past view weeks, you see the stock price falling for the Microsoft (one reason why Apple now has a higher market cap) and this happened because of the Xbox Entertainment Department not showing any real growth. (mostly regarding mobile phone OS and microsoft's zune.)

Investors are not looking at costs, they are looking at growth potiential and really the Entertainment brand doesn't seem to have that much flare.

 

  • MS shares are up YoY
  • The bolded part is not 100% true. You think the Windows division has more growth potential? They already have a market share of 90%. There really is not much more growth potential without expanding computers worldwide.
  • The EDD has an insane potential. There is no reason why the next Xbox can't be as successful as the Wii or the Windows Mobile 7 series won't be a great success or even a gaming platform like the DS. I mean, why not? Imagine how huge MS would get with a EDD division as big and profitable as Ninentendo is now.
  • The biggest potential surely is Xbox Live. More than 23 million members, 60% of them paying $50 per year is serious business. 700 million USD per year really is a market you can work with. Think about it, in this generation MS will make 1 billion USD per year just with XBL fees. And with more Xbox 360s sold and with more XBL users the marketing aspect will grow rapidly. And XBL is a social network MS owns 100%. The XBL integration on Windows Mobile phones really is a plus. Same for the Zune marketplace. There is a lot of potential.

This is no trolling, but the PS3 was a financial nightmare. It really was and is. It might be a great console with great games, but just looking at the financials, it was a flop. Same for the PSP Go btw. So as long as Sony stays in this business, there is no need to believe MS will leave.

While it is true that microsoft is up YOY, and right now in the past month it has been slowly going down again, in which case Apple is becoming the market leader for technology (on and off again).

I hate how stocks are valued, but right now investors aren't seeing huge growth in microsoft's entertainment devision and don't really see the potiential of it, and because of that stocks aren't as high as they should be.

Personally I would focus on trying to expand the mobile os market.

Also I don't think investors are talking about the OS market growth potiential, but expanding software related services, instead of hardware related goods.

I was somewhat trying to rationalize the article for people.

Sony is another mess of itself.



 

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MARCUSDJACKSON on 09 June 2010

thats not good. i don't think it will happen thow



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MARCUSDJACKSON on 09 June 2010

the real war begins next gen. this gen was a test. a little skirmish at the most. next gen will be so close, it's just unimaginable. it's not even comprehendible.

the real war starts next gen and either one of the big three getting out would be stupid.



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Lyrikalstylez on 09 June 2010

I hope not, Imagine only a sony console as an alternative to the next kiddie nintendo console....It would Suck!!!



Solid_Snake4RD on 09 June 2010
Lyrikalstylez said:

I hope not, Imagine only a sony console as an alternative to the next kiddie nintendo console....It would Suck!!!


not really

 

people just feel like that now but think PS1 and N64 ony PS2 and Wii only,that would be so bad

 

but MS will not quit



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Hephaestos on 09 June 2010
Solid_Snake4RD said:
Hephaestos said:

i'm sorry but who are the investors in question here? the board of MS holds most of the stock and I doubt any major shareholder needs to be in an article to get their points heard by MS...

 

Also this article is ignorant to the notion of sunk cost. you make strategic planning on the future gains, not on the past losses (all you do for that is fire executives). Xbox is profiatable -> article is retarded.


its not necessarily MS's board owns most shares

it can be that the public has 60% shares in minor quantity

but the other 40% are owned by people with is big blocks

 

if the minor investors come together ,MS board of directors have a problem

I did some research... and yeah it's all bull :p only gates has 7.5% others have much less.

 

Ownership Information
Shares Outstanding 8.76 Bil
Institutional Ownership (%) 62.86
Top 10 Institutions (%) 22.80
Mutual Fund Ownership (%) 1.42
5%/Insider Ownership (%) 13.81
Float (%) 86.19

doesn't remove the sunk cost argument though.



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Garnett on 09 June 2010
DirtyP2002 said:
Acevil said:
Hephaestos said:

i'm sorry but who are the investors in question here? the board of MS holds most of the stock and I doubt any major shareholder needs to be in an article to get their points heard by MS...

 

Also this article is ignorant to the notion of sunk cost. you make strategic planning on the future gains, not on the past losses (all you do for that is fire executives). Xbox is profiatable -> article is retarded.



Actually in the past view weeks, you see the stock price falling for the Microsoft (one reason why Apple now has a higher market cap) and this happened because of the Xbox Entertainment Department not showing any real growth. (mostly regarding mobile phone OS and microsoft's zune.)

Investors are not looking at costs, they are looking at growth potiential and really the Entertainment brand doesn't seem to have that much flare.

 

This is no trolling, but the PS3 was a financial nightmare. It really was and is. It might be a great console with great games, but just looking at the financials, it was a flop. Same for the PSP Go btw. So as long as Sony stays in this business, there is no need to believe MS will leave.

The PS3 is making a profit now, and with the premimum PSN, they will make even more, but they still far away from the $13.7 billion that Xbox makes per year.



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Smashchu2 on 09 June 2010
Garnett said:
DirtyP2002 said:
Acevil said:
Hephaestos said:

i'm sorry but who are the investors in question here? the board of MS holds most of the stock and I doubt any major shareholder needs to be in an article to get their points heard by MS...

 

Also this article is ignorant to the notion of sunk cost. you make strategic planning on the future gains, not on the past losses (all you do for that is fire executives). Xbox is profiatable -> article is retarded.



Actually in the past view weeks, you see the stock price falling for the Microsoft (one reason why Apple now has a higher market cap) and this happened because of the Xbox Entertainment Department not showing any real growth. (mostly regarding mobile phone OS and microsoft's zune.)

Investors are not looking at costs, they are looking at growth potiential and really the Entertainment brand doesn't seem to have that much flare.

 

This is no trolling, but the PS3 was a financial nightmare. It really was and is. It might be a great console with great games, but just looking at the financials, it was a flop. Same for the PSP Go btw. So as long as Sony stays in this business, there is no need to believe MS will leave.

The PS3 is making a profit now, and with the premimum PSN, they will make even more, but they still far away from the $13.7 billion that Xbox makes per year.

Just a little accounting, they only make profit on the unit when they sell units at a price higher then what they sell them for. This means their perofitability will be based on what Inventory system they use. They will make a profit on Last in, first out, but I doubt an electronics company would use it. Average cost would yeild a lose until most of the higher cost units move out. First in, first out will yeild a lose until they have all system produced at a lose gone. Since FIFO is the most commonly used, it's most likely they are still taking loses.



Tanstalas on 09 June 2010
DirtyP2002 said:

  • The bolded part is not 100% true. You think the Windows division has more growth potential? They already have a market share of 90%. There really is not much more growth potential without expanding computers worldwide.


uhh... population growth, computers getting cheaper.. still need an OS?

And @ bolded - do you think that computers are only in certain parts of the world?



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usrevenge on 10 June 2010

dont see it happening. the only reason MS has lost  so much is the RROD issue, if they would have spend an extra $10 per console for decent thermal paste under the CPU and GPU it probally would have been fine.

also if they would increase the size of the console itself a little heating issues would be helped, why everyone wants thier console to fit in   a paper bag idk.