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Forums - Microsoft - Microsoft nearing $7 Billion purchase of Skype

loves2splooge said:
disolitude said:
fps_d0minat0r said:

one question....

couldnt micorosft make something better than skype for that amount of money??

i mean just look at it....its a way of talking through the internet, surely it would cost way less than 7bn to make something similar.


They probably could and do it better...but there is no guarantee that it would have the 150 million users that Skype has.

Microsoft basically bought 150 million users with 8.5 billion dollars. Skype had 30% growth every year for the last 4 years, and once it hits mainstream services like Xbox live and is native in Windows 8...it should easily double in a few years.

Plus it's hard to build something from the ground up. There are other Voice-over-IP competitors than Skype on the market. But since Skype has the largest Voice over IP user base, it's seen as the safe bet. That's why I go with Skype. If I go with some other smaller, cheaper competitor and then I find that their service is inferior (since I use Skype to call landlines and mobiles, which costs money, I wouldn't want to waste buying credit on a service that sucks), that's going to leave a bad taste in my mouth. It's similar to how people sign up for a cheap cell service and then find out that the coverage and/or reception sucks balls. You get what you pay for. That's not always true but a lot of the time it is. There's a reason why here in Canada Rogers/Bell/Telus are so expensive compared to say Wind/Mobilicity. Maintaining a national cell network in a huge country like Canada doesn't come cheap (and plus the CRTC are nazis when it comes to foreign investment. But that's a rant for another topic). And I'm willing to bet that Skype's infrastructure isn't exactly cheap to maintain either. It costs lots of money to connect all those calls to landlines and mobiles worldwide and to buy out all those telephone numbers across multiple countries so that they can offer that Online Number service (sadly isn't available in Canada yet). Microsoft has the resources to invest in this infrastructure but it takes time to build up a user base obviously.


Good post. Yeah I would not know what the startup costs would be for a service like Skype. And I know better than to think I am smarter than Microsoft execs and that something can be done cheaper/better if done inhouse.



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brendude13 said:


How can I be biased against Bing!?

The re-directions to Bing, forced default search engine, click a link in a Microsoft program and it will take you to a bing search, the god awful adverts, It makes me want to RAGE! 

I don't understand...you can choose default search engine in IE8 and IE9. Doesn't have to be Bing. Which program forces bing on you?



disolitude said:
Slimebeast said:

Wow that's so much wasted money.

Instead they could take a fraction of that and invest in first party games development for Xbox.


They could but would that give similar return on investment? Besides are you really short on games to play on a 360? I am so far behind on games its not even funny...

I just finished Bullestorm and have Marvel VS Capcom 3 in my 360 now. Still have to get to Mortal Kombat, Brink, Portal 2...

No, personally I have a huge backlog of unplayed games but I still want as many exclusives as possible for X360 so it can win the console war.

ROI on a Skype purchase will be very low. Mark my words.

FYI I have over 20 unplayed games in my backlog. And I need to finish them all in time for 11 11 11.



Slimebeast said:

No, personally I have a huge backlog of unplayed games but I still want as many exclusives as possible for X360 so it can win the console war.

ROI on a Skype purchase will be very low. Mark my words.

FYI I have over 20 unplayed games in my backlog. And I need to finish them all in time for 11 11 11.


What is your reasoning for the low ROI?

Considering that Skype is set to do 1 billion in revenue on subscriptions alone, and that they do not have any advertising revenue being generated as of yet, I'd say that it could easily become a billion dollars in profit per year type of service.

Not to mention the benefits integrated skype service provides to products like Windows 8, Xbox live and WP7...



disolitude said:
brendude13 said:
 


How can I be biased against Bing!?

The re-directions to Bing, forced default search engine, click a link in a Microsoft program and it will take you to a bing search, the god awful adverts, It makes me want to RAGE! 

I don't understand...you can choose default search engine in IE8 and IE9. Doesn't have to be Bing. Which program forces bing on you?

Internet explorer, no matter how many times I changed the default search, it always changed back to Bing after restarting Internet Explorer, so now I use Google chrome.

Also, in the MSN news feed, it will say "latest article: Osama Bin Laden is dead", I click it and it takes me straight into a Bing search...

Also, my new computers at school run a special version of Windows designed for schools, and the default search engine is convinently locked as Bing.

I don't think I need to mention the adverts, adverts already piss me off a tonne, the Bing adverts make me contemplate suicide.

And the most irritating thing is, was all this really necessary? Microsoft already make plenty of products, why do they need to put another one into an oversaturated market? The XBOX 360 was a smart move since SEGA was out of the picture, but crap like Bing and Zune really tarnish Microsoft's brand.



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brendude13 said:

Internet explorer, no matter how many times I changed the default search, it always changed back to Bing after restarting Internet Explorer, so now I use Google chrome.

Also, in the MSN news feed, it will say "latest article: Osama Bin Laden is dead", I click it and it takes me straight into a Bing search...

Also, my new computers at school run a special version of Windows designed for schools, and the default search engine is convinently locked as Bing.

I don't think I need to mention the adverts, adverts already piss me off a tonne, the Bing adverts make me contemplate suicide.

And the most irritating thing is, was all this really necessary? Microsoft already make plenty of products, why do they need to put another one into an oversaturated market? The XBOX 360 was a smart move since SEGA was out of the picture, but crap like Bing and Zune really tarnish Microsoft's brand.

To each their own I guess.

Zune trashes microsoft brand only because it was a failure. The devices and the software, along with the prepaid service Zune offers are all really good.

As far as bing, I don't see what the problem is with having an alternative to google. I use Google myself (other than maps which Bing has better)...but if Bing can push google to get better, everybody wins.



disolitude said:
Slimebeast said:
 

No, personally I have a huge backlog of unplayed games but I still want as many exclusives as possible for X360 so it can win the console war.

ROI on a Skype purchase will be very low. Mark my words.

FYI I have over 20 unplayed games in my backlog. And I need to finish them all in time for 11 11 11.


What is your reasoning for the low ROI?

Considering that Skype is set to do 1 billion in revenue on subscriptions alone, and that they do not have any advertising revenue being generated as of yet, I'd say that it could easily become a billion dollars in profit per year type of service.

Not to mention the benefits integrated skype service provides to products like Windows 8, Xbox live and WP7...

Oh I didn't know Skype had paid subscriptions lol. I thought u just put a few pennies into your Skype account and started calling.



disolitude said:
brendude13 said:
 

Internet explorer, no matter how many times I changed the default search, it always changed back to Bing after restarting Internet Explorer, so now I use Google chrome.

Also, in the MSN news feed, it will say "latest article: Osama Bin Laden is dead", I click it and it takes me straight into a Bing search...

Also, my new computers at school run a special version of Windows designed for schools, and the default search engine is convinently locked as Bing.

I don't think I need to mention the adverts, adverts already piss me off a tonne, the Bing adverts make me contemplate suicide.

And the most irritating thing is, was all this really necessary? Microsoft already make plenty of products, why do they need to put another one into an oversaturated market? The XBOX 360 was a smart move since SEGA was out of the picture, but crap like Bing and Zune really tarnish Microsoft's brand.

To each their own I guess.

Zune trashes microsoft brand only because it was a failure. The devices and the software, along with the prepaid service Zune offers are all really good.

As far as bing, I don't see what the problem is with having an alternative to google. I use Google myself (other than maps which Bing has better)...but if Bing can push google to get better, everybody wins.

It was a failure because Microsoft just wanted to stick it to Apple, there was no calling for them.

Same with Bing, unless Bing can magically do something that Google can't then nobody will want to use it over Google. What was the point of making the search engine in the first place. Why can't they innovate instead of slapping a Microsoft sticker on another product and over advertise it. Microsoft has always had successful advertising, that is why they know they can do crap like this.

Anyway, off the topic about butting into a market where they are not needed. This is more about whether Microsoft will be generous or spiteful, will they disable Skype on devices such as the PSP? If so then I am throwing my XBOX 360 out the window. Microsoft will never get a penny from me again, I need Skype on my PSP to contact my Dad.



You can't use Skype on the PC or read this thread? 

Also the Zune was great, and I will buy another when I need a new MP3 player! :D 



Sig thanks to Saber! :D 

Darth Tigris said:

HAHAHAHAHAAA!!!!!!!  That's just great ....... and scary.

OT: So how does this compare to Google Voice?  I've been using GV for almost a year now and I don't have too many complaints.  But if this integrates better with my 360 and (soon to purchase) Windows Phone and PC, I'm curious about making a transition.  But only if I can keep my number.  I don't want to change numbers yet again ...


I don't know about Google voice but one of the big things about Skype is the ability to both call phones, and to have an actual phone number tied to your Skype so that people can call you on the phone and it rings to your computer.

The biggest advantage of this is that your phone number is local to your friends and family no matter where in the world you are.  Kind of like a cel phone but without the roaming charges.