MS Investors want MS to sell Xbox division because It hasn't made money yet

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Kaz_Son

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#51 Kaz_Son
Member since 2013 • 1389 Posts
I'm guessing getting knocked the fvck out at E3 and being a patsy of the industry is causing this uprising, not to mention all the 180s. Heil68
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Kinthalis

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#52 Kinthalis
Member since 2002 • 5503 Posts

Also forgot about the R&D. Didn't they say the spent over a hundred million dollars designing the Xbone contorlled?  Jeebus. I'm guessing 2 billion just on R&D, several tens of billions in manufacturing - they'll make some fo that up - their subsidy of course.

 

I could see why investors might be upset.

 

Imagine if Microsft, instead of bleeding money all over the place to create Xbox would have isntead focused solely on the PC - a market that has created profit for hardware, service and software develoeprs since the 80's instead of the console market.

 

They could have beat Steam at it's own game, easily, since they certinaly had the funds to do so. They could have owned PC gaming, completely, even more so than Steam does now, and that would have been nothing but a pure revennue stream after year 1 or 2.

 

What a waste.

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OneInchMan99

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#53 OneInchMan99
Member since 2012 • 1248 Posts

Xbox brand will be long gone way before Playstation thats for sure.:cool:

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MonsieurX

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#54 MonsieurX
Member since 2008 • 39858 Posts

Try harder damien you are truly a pathetic fanboy

XBOunity
all those tears,handle them like a man :|
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Pariah_001

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#55 Pariah_001
Member since 2003 • 4850 Posts
also MS has invested several billion to give us better games, better online play, and a better design. so sure it cost money but they have it to throw around. also they pull in over 2.75 billion a year just on XBLG (46 million subscribers at 60 a years) so why would they kill something where all the major expenses are done with and MS doesn't need to spend much more to keep it going and it pulls in almost 3 billion a year in subscriptions, not including the money it pulls in on games and accessories and such.darkangel115
You talk about Microsoft "giving" because they have a shit ton of disposable income and then, in the very next sentence, you highlight the fact that they milk their Xbox subscribers. Microsoft doesn't make any specific investments in better games, design, or online. They just buy up those commodities and expect them to sell well--which they tend to (since gamers are junkies). I'm kinda curious to see how long Microsoft would stick with the Xbox before they ditch it for the lack of profit. Steve Ballmer once made the point that Windows wasn't profitable for seven years when he was last grilled on Xbox profitability. We're going on twice that amount of time now and they're still sticking with it despite no profits. I, personally, blame their business practices: they've always been more concerned with getting their ponies into the race first with some quick and profitable IPs so they could just let time and cultural absorption do the rest of the work for them. That worked fairly well in the short term last generation, but not so much in the end (see also: RROD, game droughts, timed exclusivity buyouts, etc). Personally, I'd favor Sony's business practices more. True, they lost all of their PS2 profits last generation during the slow but steady build of the PS3 user base, but they actually invested in their first party games rather than just make quick and profitable purchases. I guarantee that-that's what allowed them to catch up to the 360 sales in the long run despite the launch time and user base disparity: they emphasized quality. Thus, in the long run, while both companies lost money, Sony made the most business/economically sound investments. Charging for multiplayer is a mistake though. "Complete gaming experience sold separately" is an Xbox motto, and they shouldn't allow themselves to be absorbed into that. Aside from myself, I know about a dozen other people who've made it clear that they won't use the multiplayer if they're gonna be charged for it. And I think that characterizes a great deal of the PS3 user base.
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FoxbatAlpha

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#56 FoxbatAlpha
Member since 2009 • 10669 Posts
Oh God! Does this mean I have to go back to being a cow?
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R4gn4r0k

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#57 R4gn4r0k
Member since 2004 • 49129 Posts

Or you could look at it as the original Xbox set the framework for what led to years of profit. You have to spend money to make money, Microsoft spent money building the Xbox brand and name and now are enjoying the fruits of their labor.

Third time: You can always present the flip side of a financial analysis.

R3FURBISHED

You are looking at it from a positive side and making it out like we are looking at it from a negative side.

I'm just looking at it from a neutral side though... Overall, it hasn't been profitable, fact.

The RROD fiasco had a pretty epic part to play in that. It cost them at least a billion to put right. Ninja-Hippo

And RROD was there because they rushed out the hardware to beat their competition to the puch and make more money that way.

Like refurbished said: you gotta make money to spend money, wait...

The Windows OS division is going to make money no matter what. Businesses, Universities, and Home (not as much) are on lock. lowkey254

Oh, my mistake. I meant their PC gaming division :P

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stayhigh1

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#58 stayhigh1
Member since 2008 • 724 Posts
The Xbox division doesn't represent a large enough percentage of Microsoft to warrant such an action.R3FURBISHED
If they are losing billions of dollars on the xbox division its best to let it go..Fanboys dont know the value of a dollar..
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StormyJoe

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#59 StormyJoe
Member since 2011 • 7806 Posts

http://www.eteknix.com/microsoft-investor-wants-to-fire-ballmer-and-sell-xbox-division/

ouch!! after a decade Xbox still hasnt' made any profit

-Damien-

Topic: "MS Investors want MS to sell Xbox division because It hasn't made money yet"

Actual quote (about 1 investor no less): " it is believed they might target the Xbox division and try and get rid of it altogether"

So, the author speculates that on investment group mighttarget the XBox division.

Sigh... :roll:

/thread

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Snugenz

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#60 Snugenz
Member since 2006 • 13388 Posts

Investor, singular, oh right Damien thread.

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Newhopes

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#61 Newhopes
Member since 2009 • 4775 Posts

[QUOTE="R3FURBISHED"]The Xbox division doesn't represent a large enough percentage of Microsoft to warrant such an action.stayhigh1
If they are losing billions of dollars on the xbox division its best to let it go..Fanboys dont know the value of a dollar..

 

Why hasn't Sony sold their Playstation divison when it's lost money for 6 of the last 7 years?

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drakekratos

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#63 drakekratos
Member since 2011 • 2311 Posts
Xbox One is a bad investment for customers. Sega Saturn Part 2
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PurpleMan5000

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#64 PurpleMan5000
Member since 2011 • 10531 Posts
Xbox One is a bad investment for customers. Sega Saturn Part 2drakekratos
I still wish my mom would have bought me a Saturn. I really missed a few quality games there.
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ShadowriverUB

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#65 ShadowriverUB
Member since 2009 • 5515 Posts

[QUOTE="arredondo"]

The numbers don't lie. Overall the Gaming Division at Microsoft has been sucking the company dry. Note the bar on the far right:

 

asfd3221125511352.jpg

R3FURBISHED

And as I stated before, in this thread...to you! that numbers can always be easily twisted. I see that as five consecutive years of profit.

Looking on Xbox Oneresponce future does not look so colorful as with 360 andi bet DRM reversal was not a free move
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Newhopes

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#66 Newhopes
Member since 2009 • 4775 Posts

Xbox One is a bad investment for customers. Sega Saturn Part 2drakekratos

Saturn was one of the best consoles I've owned, and my Saturn games are worth quite alot of money now.....

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-Renegade

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#67 -Renegade
Member since 2007 • 8340 Posts

[QUOTE="blue_hazy_basic"]"Analyst Rick Sherlund claims that big changes are going to take place very soon as other shareholders support the decision to get rid of Steve Ballmer in addition to the investment group ValueAct. According to the report ValueAct are seeking to replace Steve Ballmer because his strategy inspires little confidence." Well as Balmer is already resigning I think that kicks that leg out :Parredondo

The analyst made the comments before Ballmer grabbed a parachute and lept out of the MS plane. It may very well be the case that this potential uprising is what pushed him out before things got ugly and more public.

And for those blowing off a 1% stock holder, please note that his 1% is $2 billions worth in opinions, and that top MS leaders like Paul Allen only own 2% of the company. Even Ballmer himself only owns 4%!

you say 2 and 4% like they are smalll numbers. That's 12 billion dollars you are talking about.
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pelvist

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#68 pelvist
Member since 2010 • 9001 Posts

Yes, http://www.digitalspy.co.uk/tech/news/a509512/steve-ballmer-to-retire-as-microsoft-ceo-within-the-next-12-months.html

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killzowned24

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#69 killzowned24
Member since 2007 • 7345 Posts
getting rid of xbox would be smart because all it did was garner a boat load of more haters :P
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NFJSupreme

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#70 NFJSupreme
Member since 2005 • 6605 Posts
people say the same thing about Sony. Everyone needs to just relax. Both Sony and MS are in this for the long run. When you play with billions like they do you understand that it will take time to make your money back. Companies like MS have that time because they get boat loads of money from every where else.
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Stevo_the_gamer

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#71 Stevo_the_gamer  Moderator  Online
Member since 2004 • 50185 Posts
It is quite remarkable just how much money was lost with the poor planning and contracts with the original Xbox.
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WilliamRLBaker

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#72 WilliamRLBaker
Member since 2006 • 28915 Posts

The numbers don't lie. Overall the Gaming Division at Microsoft has been sucking the company dry. Note the bar on the far right:

 

asfd3221125511352.jpg

 

 

 

arredondo
......... BAAAAAAAAAAAAAAAA HAHAHAHAHA 2.5 billion sucking Microsoft dry? ..........oh god I think I broke my funny sense.......
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navyguy21

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#73 navyguy21
Member since 2003 • 17951 Posts
Xbox is cool, but by our estimates Microsoft has not made money at this believes Rick Sherlund. HE believes they havent made money. Who knows what his definition of "made money" is, but Xbox has been profitable since 2007 with the launch of Halo 3, and that INCLUDES all monies lost from Xbox and RROD. http://arstechnica.com/gaming/2007/10/strong-halo-3-launch-helps-microsoft-to-first-ever-profit-on-gaming/
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Eddie-Vedder

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#74 Eddie-Vedder
Member since 2003 • 7810 Posts

Oh boy :lol: 

 

I doubt the XBox brand will last this gen :lol:

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navyguy21

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#75 navyguy21
Member since 2003 • 17951 Posts
Investors were worried about Sony during first couple of years of PS3 Apple investors voiced concerns prior to Ipod-mania IBM? Same deal. Market analysts and stock brokers have jobs for a reason. Not every investor is well educated on the markets they invest it. In a perfect world, yes, they would be............but then in a capitalist society, you wouldnt make any money if it werent for the idiots :P A company with a 1% stake has very little chance of making any decisions..........let alone getting the CEO fired. If it were that easy, plenty of gaming CEOs would be fired already.
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tormentos

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#76 tormentos
Member since 2003 • 33798 Posts

 

The Xbox has been the best selling console for the past ~30 months in the largest market in the world - it is very easy to spin numbers however you want.

R3FURBISHED

And yet they have sell half of what the Ps2 sold in those same 8 years and a huge part of the number is RROD units.

 

The xbox has make money,sadly the money they make had not make up for all they loss since 2001,so they have 12 years on ther market that the loss still out do the profits,why else do you think the xbox one is a weak console that cost $500 an why do you think MS was pushing so hard for no used games as we know them and only need it,they wanted to kill pirates which were many on 360,maximaize profits by requiring live for eveything again,and by controlling the used sales market.

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WilliamRLBaker

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#77 WilliamRLBaker
Member since 2006 • 28915 Posts

[QUOTE="R3FURBISHED"]

 

The Xbox has been the best selling console for the past ~30 months in the largest market in the world - it is very easy to spin numbers however you want.

tormentos

And yet they have sell half of what the Ps2 sold in those same 8 years and a huge part of the number is RROD units.

 

The xbox has make money,sadly the money they make had not make up for all they loss since 2001,so they have 12 years on ther market that the loss still out do the profits,why else do you think the xbox one is a weak console that cost $500 an why do you think MS was pushing so hard for no used games as we know them and only need it,they wanted to kill pirates which were many on 360,maximaize profits by requiring live for eveything again,and by controlling the used sales market.

link to huge part of 360 purchases were repurchases because rrod?
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Sweenix

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#78 Sweenix
Member since 2013 • 5957 Posts

Try harder damien you are truly a pathetic fanboy

XBOunity

pot calling the kettle black

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WilliamRLBaker

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#79 WilliamRLBaker
Member since 2006 • 28915 Posts

[QUOTE="XBOunity"]

Try harder damien you are truly a pathetic fanboy

Sweenix

pot calling the kettle black

thats what SW is you are included.
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Sweenix

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#80 Sweenix
Member since 2013 • 5957 Posts

[QUOTE="Sweenix"]

[QUOTE="XBOunity"]

Try harder damien you are truly a pathetic fanboy

WilliamRLBaker

pot calling the kettle black

thats what SW is you are included.

Not everyone here is a fanboy

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xhawk27

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#81 xhawk27
Member since 2010 • 12194 Posts

At least Microsoft didn't have to sell any buildings! :lol:

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Netherscourge

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#82 Netherscourge
Member since 2003 • 16364 Posts

[QUOTE="Sweenix"]

[QUOTE="XBOunity"]

Try harder damien you are truly a pathetic fanboy

WilliamRLBaker

pot calling the kettle black

thats what SW is you are included.

 

Dude, you gotta admit he is a bit exteme with the fanboysim.  He makes Major Nelson look like a cow. lol

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navyguy21

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#83 navyguy21
Member since 2003 • 17951 Posts

[QUOTE="WilliamRLBaker"][QUOTE="Sweenix"]

pot calling the kettle black

Sweenix

thats what SW is you are included.

Not everyone here is a fanboy

You are a fanboy for saying that. [spoiler] Isnt it crazy how easily that word is thrown around just for disagreeing with someone's opinion :P [/spoiler]

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clr84651

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#84 clr84651
Member since 2010 • 5643 Posts

Amazing how MS has always charged $50-$60 to play online & tons of others charges for simple upgrades & they still can't do well. 

Imagine if Sony had charged for online with PS2 & PS3 the money they would've made.

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linkdarkside

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#85 linkdarkside
Member since 2003 • 6279 Posts

i remenber reading that MS started making money from its Xbox division.

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jhcho2

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#86 jhcho2
Member since 2004 • 5103 Posts

i remenber reading that MS started making money from its Xbox division.

linkdarkside

With the RROD replacement costs conveniently disregarded of course

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longtimelurker0

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#87 longtimelurker0
Member since 2013 • 190 Posts

the investors are dumb, I'm not a fan of the X1 but it does have a chance to actually have a place in the entertainment scene because its the first console to offer its own HBO like service. It can actually grab a part of the market that is not just gaming , basicly what I'm trying to say is that this is the first console microsoft actually made that might actually make them money, they should give it a chance.

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Joedgabe

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#88 Joedgabe
Member since 2006 • 5134 Posts

The numbers don't lie. Overall the Gaming Division at Microsoft has been sucking the company dry. Note the bar on the far right:

 

asfd3221125511352.jpg

 

 

arredondo

so? it's improving.. i believe eventually they'll make a good profit from it.

 

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Sweenix

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#89 Sweenix
Member since 2013 • 5957 Posts

[QUOTE="Sweenix"]

[QUOTE="WilliamRLBaker"] thats what SW is you are included.navyguy21

Not everyone here is a fanboy

You are a fanboy for saying that. [spoiler] Isnt it crazy how easily that word is thrown around just for disagreeing with someone's opinion :P [/spoiler]

That's why i have been spending less time here lately :P cant even have an argument without being called a fanboy lol

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jsmoke03

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#90 jsmoke03
Member since 2004 • 13719 Posts

[QUOTE="R4gn4r0k"]

[QUOTE="R3FURBISHED"]

And as I stated before, in this thread...to you! that numbers can always be easily twisted. I see that as five consecutive years of profit.

R3FURBISHED

You can't ignore the bar on the right that says "total" though. Even with those years of profit their Xbox division isn't profitable.

Or you could look at it as the original Xbox set the framework for what led to years of profit. You have to spend money to make money, Microsoft spent money building the Xbox brand and name and now are enjoying the fruits of their labor.

Third time: You can always present the flip side of a financial analysis.

well arent they going to end up losing money with the x1 again for awhile? another 2 or 3 years of losses? you are spinning it but its just a spin...
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arredondo

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#91 arredondo
Member since 2004 • 703 Posts

[QUOTE="arredondo"]

The numbers don't lie. Overall the Gaming Division at Microsoft has been sucking the company dry. Note the bar on the far right:

 

asfd3221125511352.jpg

 

 

Joedgabe

so? it's improving.. i believe eventually they'll make a good profit from it.

 

Improving? How is it improving when Microsoft's Gaming Division dropped 75% in profitability when you compare the most recent year to the one before it?

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-Damien-

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#92 -Damien-
Member since 2004 • 5355 Posts

Spending too much money on moneyhatting 3rd party developers and bribing gaming media are the reason why Microsoft can't make money from their Xbox division.

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Tessellation

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#93 Tessellation
Member since 2009 • 9297 Posts
never seen such virgin basement dweller obsess over a company and a console he doesn't even own or plan to get :cool: the : lol -Damien- thread necessary.
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drakekratos

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#94 drakekratos
Member since 2011 • 2311 Posts
who would they sell to? SEGA? lol
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campzor

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#95 campzor
Member since 2004 • 34932 Posts
Sony to regain a monopoly please.
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cainetao11

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#96 cainetao11
Member since 2006 • 38077 Posts

thread title says "investors" while article says "investor".

CaseyWegner
So one of us, as I own MSFT on the Nasdaq, so I am an investor as well. With the float of shares MS has the fact that its ONE INVESTOR, makes this thread about kaka. What's the difference between a ninja and a crazy person? Ninjas throw smoke bombs and shuriken, crazy people throw hand fills of poop.
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PurpleMan5000

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#97 PurpleMan5000
Member since 2011 • 10531 Posts
[QUOTE="navyguy21"]Investors were worried about Sony during first couple of years of PS3 Apple investors voiced concerns prior to Ipod-mania IBM? Same deal. Market analysts and stock brokers have jobs for a reason. Not every investor is well educated on the markets they invest it. In a perfect world, yes, they would be............but then in a capitalist society, you wouldnt make any money if it werent for the idiots :P A company with a 1% stake has very little chance of making any decisions..........let alone getting the CEO fired. If it were that easy, plenty of gaming CEOs would be fired already.

I agree with most of what you said, but a 1% share of Microsoft is absolutely enormous. I really doubt there are more than a half dozen entities with a larger share than that.
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PurpleMan5000

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#98 PurpleMan5000
Member since 2011 • 10531 Posts

[QUOTE="Joedgabe"]

[QUOTE="arredondo"]

The numbers don't lie. Overall the Gaming Division at Microsoft has been sucking the company dry. Note the bar on the far right:

 

asfd3221125511352.jpg

 

 

arredondo

so? it's improving.. i believe eventually they'll make a good profit from it.

 

Improving? How is it improving when Microsoft's Gaming Division dropped 75% in profitability when you compare the most recent year to the one before it?

To be fair, gaming as a whole is way down right now. If these new consoles don't take off right out the gate (I think the PS4 will), consoles could die.
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drakekratos

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#99 drakekratos
Member since 2011 • 2311 Posts
Xbox One was so poorly planned out, it got Don Mattrick fired.
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GarGx1

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#100 GarGx1
Member since 2011 • 10934 Posts

I'm amazed that companies like MS and Sony persist with the console market, all they appear to do is lose money hand over fist.