ioi said:
As I said, I would split it into two factors - they make a best estimate based on data they have and will then round that estimate to a whole number for the purposes of a press statement and simplicity. If I had actually sold 1.8m units of something and I released a statement saying I had sold 2m (and covered myself by saying that this was an estimate) then I wouldn't be lying as 1.8m does round up to 2m depending on what you are rounding to - it could be the nearest 1m as an extreme example. I know when a company says they have sold 5m that it will come with a margin of error on +-250k or so - it doesn't mean that they have definitely 100% sold exactly 5m units as of that data and not a unit more or a unit less. It is just an estimate as with everything else. There are very few pieces of data out there that are truly 100% accurate, despite how people try to portray or interpret them. |
Well ok, but rounding up from "1.8 million" to "2 million" isn't really the same thing as rounding an estimate to a "whole number". Rounding from 1.8 million to 2.0 million is in fact the same thing as rounding from 1800000 to 2000000.
Saying that rounding up is acceptable and legally permitted behavior for a public incorporated company when it concerns whole millions of units seems kind of arbitrary. In other words, why is 1.8 -> 2 million a legally permissible distortion while 8 -> 10 million or 90 -> 100 million is not, in your opinion?
I have no professional insight whatsoever how this works inside the organizations of MS, Nintendo and Sony, but somehow I would assume that they get some numbers on sell-through from retailers etc, and at a certain date their aggregated numbers on sell-through reach a milestone such as e.g. "10 million". Those internal sell-through numbers are probably subject to a certain amount of uncertainty (just like say Mediacreate and NPD numbers).
Nevertheless, you seem to be suggesting that it would be permissible for e.g. Sony to have their internal numbers on sell-through say 9.5 million, and make an official statement that they reached the milestone "10 million units sold through".
I don't understand how that would not constitute lying to shareholders about the performance of the company with impact on stock price?












