Stop using the ''but Microsoft is rich'' argument

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PullTheTricker

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#1 PullTheTricker
Member since 2006 • 4749 Posts

If you think Microsoft's gaming devision cannot go bankrupt...think again.

There is the Antitrust law for that. Microsoft can't use their money they earned with their Windows division for their Gaming Devision. So if the Gaming Devision goes bankrupt...its bankrupt...simple as that. If they do not obey this rule they will get punished for breaking a law. And the goverment and shareholders will not be very happy with that...


A business with a monopoly over certain products or services may be in violation of antitrust laws if it has abused its dominant position or market power. Although not all anti-competitive behavior which is subject to antitrust laws involve illegal cartels or trusts, the following types of activity are generally prohibited.

  • Bid rigging - A form of price fixing and market allocation, and involves an agreement in which one party of a group of bidders will be designated to win the bid
  • Predatory pricing - The practice of a firm selling a product at very low price with the intent of driving competitors out of the market, or create a barrier to entry into the market for potential new competitors
  • Price fixing - An agreement between business competitors selling the same product or service regarding its pricing
  • Tying - The practice of making the sale of one good conditional on the purchase of a second distinctive good
  • Vendor lock-in - Is a situation in which a customer is so dependent on a vendor for products and services that he or she cannot move to another vendor without substantial switching costs, real and/or perceived
  • Geographic allocation - An agreement between competitors not to compete within each other's geographic territories.
  • Walker Process fraud - Illegal monopolization through the maintenance and enforcement of a patent obtained via fraud on the Patent Office (the term comes from the Supreme Court case Walker Process Equipment, Inc. v. Food Machinery & Chemical Corp., 382 U.S. 172 (1965).

Its actually Microsoft that should be compared to Sega... not Sony...

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ROCKINGFOOL

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#2 ROCKINGFOOL
Member since 2005 • 1795 Posts
word of fact :
bill gates is the richest man in the world for over 10 years and now hes got 56 billion$

 
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jiggawho2006

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#3 jiggawho2006
Member since 2006 • 471 Posts

So, due to anti trust law, Sony can not use earning from their gaming division to support their electronic division? ...let's think...only profit that Sony made for past year has been from the gaming division, so how come their electronic division did not go into bankcrupty? How come?

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Darth_Stalin

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#4 Darth_Stalin
Member since 2005 • 8681 Posts
Um....they can use Windows money. Considering how Windows games and XBL are joining together. Besides, what money do you think they used to buy Rare? MS was not that rich at the time. Besides, MS's gaming department is making more money than SOny....considering they are making money off of each 360 sold, and sony isn't yet.
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Danthegamingman

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#5 Danthegamingman
Member since 2003 • 19978 Posts

If you think Microsoft's gaming devision cannot go bankrupt...think again.

There is the Antitrust law for that. Microsoft can't use their money they earned with their Windows division for their Gaming Devision. So if the Gaming Devision goes bankrupt...its bankrupt...simple as that. If they do not obey this rule they will get punished for breaking a law. And the goverment and shareholders will not be very happy with that...


A business with a monopoly over certain products or services may be in violation of antitrust laws if it has abused its dominant position or market power. Although not all anti-competitive behavior which is subject to antitrust laws involve illegal cartels or trusts, the following types of activity are generally prohibited.

  • Bid rigging - A form of price fixing and market allocation, and involves an agreement in which one party of a group of bidders will be designated to win the bid
  • Predatory pricing - The practice of a firm selling a product at very low price with the intent of driving competitors out of the market, or create a barrier to entry into the market for potential new competitors
  • Price fixing - An agreement between business competitors selling the same product or service regarding its pricing
  • Tying - The practice of making the sale of one good conditional on the purchase of a second distinctive good
  • Vendor lock-in - Is a situation in which a customer is so dependent on a vendor for products and services that he or she cannot move to another vendor without substantial switching costs, real and/or perceived
  • Geographic allocation - An agreement between competitors not to compete within each other's geographic territories.
  • Walker Process fraud - Illegal monopolization through the maintenance and enforcement of a patent obtained via fraud on the Patent Office (the term comes from the Supreme Court case Walker Process Equipment, Inc. v. Food Machinery & Chemical Corp., 382 U.S. 172 (1965).

Its actually Microsoft that should be compared to Sega... not Sony...

PullTheTricker
Tell that to XM and Sirius digital radio merger.
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Ragnarok1051

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#6 Ragnarok1051
Member since 2007 • 20238 Posts

So, due to anti trust law, Sony can not use earning from their gaming division to support their electronic division? ...let's think...only profit that Sony made for past year has been from the gaming division, so how come their electronic division did not go into bankcrupty? How come?

jiggawho2006

I think this only applies to American companies and Sony is not American. We have laws set up that make monopolies illegal, I don't know about Japan.

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ramey70

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#7 ramey70
Member since 2006 • 4002 Posts

So, due to anti trust law, Sony can not use earning from their gaming division to support their electronic division? ...let's think...only profit that Sony made for past year has been from the gaming division, so how come their electronic division did not go into bankcrupty? How come?

jiggawho2006
You're wrong. Sony's Electronics Division has been profitable this year. In fact, it was their gaming division that lost money. You also need to remember that in order for a company to file bankrupcty they have to post enough consecutive losses that their liabilities outweight their assets. It would take quite a few losses for a company like Sony to even approach bankruptcy.
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rowzzr

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#8 rowzzr
Member since 2005 • 2375 Posts
so microsoft is rich. well, sony is, too. they have products in every kind of department. cameras, video players, cellphones~ so the "but MS is rich" argument is nonsense. :) so i agree with thread starter
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PullTheTricker

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#9 PullTheTricker
Member since 2006 • 4749 Posts

only profit that Sony made for past year has been from the gaming division, so how come their electronic division did not go into bankcrupty?

jiggawho2006
Who said this? Actually they make bigger profits from their other divisions. Sony Erricson, Sony Bravia (Elektronical devision) and Sony Pictures and Sony Records. Thats what the biggest profit is coming from. Last year it was confirmed they we suffering on a big profit loss from their Gaming Devision. I'm pretty sure about that...I can still remember!
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Darth_Stalin

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#10 Darth_Stalin
Member since 2005 • 8681 Posts
The fact is all departments help each other out, Windows sponsored the first XBox. How do you think an absolute newbie in the videogame console industry was able to buy Rare, and sponsore a console which at first was losing them money and convince other devs to make games for them........*ding* Windows. The point is in each company, all divisions scratch each others backs. They are allied or united. Trust me, MS Windows will not let the Microsoft Games division go broke. Besides, if all divisions where on their own, PS3 will not wait for Blu-Ray and use PS3 to push it.
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JustAGamer01

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#11 JustAGamer01
Member since 2004 • 568 Posts
Dude they are  rich, thats the only reason xbox didnt screw them with its poor sales income.. 
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jiggawho2006

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#12 jiggawho2006
Member since 2006 • 471 Posts

Sony's electronic division is profitable? is that why they're in debt in loans? They had to borrow money to cover "battery bomb."   Is that why their value in the market dropped 40% because it's so profitable? Is that why they're in billions in debt? WOW, i didn't realize profitable = debt

http://en.wikipedia.org/wiki/Sony 

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Puckhog04

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#13 Puckhog04
Member since 2003 • 22814 Posts

MS is rich...that's reality.

Why dodge reality? Very few companies could lose as much money as MS did on the original Xbox and keep going (Sony is not one of them).

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Ontain

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#14 Ontain
Member since 2005 • 25501 Posts
[QUOTE="jiggawho2006"]

So, due to anti trust law, Sony can not use earning from their gaming division to support their electronic division? ...let's think...only profit that Sony made for past year has been from the gaming division, so how come their electronic division did not go into bankcrupty? How come?

Ragnarok1051

I think this only applies to American companies and Sony is not American. We have laws set up that make monopolies illegal, I don't know about Japan.

wow you're really clueless. if you want to do business in the US then the law applies to you. why do you think japanese auto makers still have to conform to our regulations? Also there's an American division of Sony too.
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sunscorch

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#15 sunscorch
Member since 2004 • 2512 Posts
Didn't MS lose more money on the original Xbox then either Sony or Nintendo made w/ their respected consoles? how is there a 360 if that is not the case?
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Ragnarok1051

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#16 Ragnarok1051
Member since 2007 • 20238 Posts
[QUOTE="Ragnarok1051"][QUOTE="jiggawho2006"]

So, due to anti trust law, Sony can not use earning from their gaming division to support their electronic division? ...let's think...only profit that Sony made for past year has been from the gaming division, so how come their electronic division did not go into bankcrupty? How come?

Ontain

I think this only applies to American companies and Sony is not American. We have laws set up that make monopolies illegal, I don't know about Japan.

wow you're really clueless. if you want to do business in the US then the law applies to you. why do you think japanese auto makers still have to conform to our regulations? Also there's an American division of Sony too.

Yeah didn't think of that, doesn't make me clueless though:roll:. I only stayed awake through half of Econimics class:P

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privateiron13

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#17 privateiron13
Member since 2006 • 275 Posts
[QUOTE="PullTheTricker"]

If you think Microsoft's gaming devision cannot go bankrupt...think again.

There is the Antitrust law for that. Microsoft can't use their money they earned with their Windows division for their Gaming Devision. So if the Gaming Devision goes bankrupt...its bankrupt...simple as that. If they do not obey this rule they will get punished for breaking a law. And the goverment and shareholders will not be very happy with that...


A business with a monopoly over certain products or services may be in violation of antitrust laws if it has abused its dominant position or market power. Although not all anti-competitive behavior which is subject to antitrust laws involve illegal cartels or trusts, the following types of activity are generally prohibited.

  • Bid rigging - A form of price fixing and market allocation, and involves an agreement in which one party of a group of bidders will be designated to win the bid
  • Predatory pricing - The practice of a firm selling a product at very low price with the intent of driving competitors out of the market, or create a barrier to entry into the market for potential new competitors
  • Price fixing - An agreement between business competitors selling the same product or service regarding its pricing
  • Tying - The practice of making the sale of one good conditional on the purchase of a second distinctive good
  • Vendor lock-in - Is a situation in which a customer is so dependent on a vendor for products and services that he or she cannot move to another vendor without substantial switching costs, real and/or perceived
  • Geographic allocation - An agreement between competitors not to compete within each other's geographic territories.
  • Walker Process fraud - Illegal monopolization through the maintenance and enforcement of a patent obtained via fraud on the Patent Office (the term comes from the Supreme Court case Walker Process Equipment, Inc. v. Food Machinery & Chemical Corp., 382 U.S. 172 (1965).

Its actually Microsoft that should be compared to Sega... not Sony...

Danthegamingman
Tell that to XM and Sirius digital radio merger.

What has this crap got to do with Microsoft not being able to use windows money for the gaming department. companies with the size and power of Microsoft can do what they want when they want, they will have the top lawyers and business brains in their ranks to find loo-polls around this stuff if needs be. Another thing, it says there that firms can't fix pricing and create barriers to drive competitors out of the market, well big Bill is or people that work for him are up in front of the judge every other month for ruining small business's and it hasn't damaged there vast wealth yet. If Bill gates wants to take over the games industry he eventually will.
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SpruceCaboose

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#18 SpruceCaboose
Member since 2005 • 24589 Posts

If you think Microsoft's gaming devision cannot go bankrupt...think again.

There is the Antitrust law for that. Microsoft can't use their money they earned with their Windows division for their Gaming Devision. So if the Gaming Devision goes bankrupt...its bankrupt...simple as that. If they do not obey this rule they will get punished for breaking a law. And the goverment and shareholders will not be very happy with that...


A business with a monopoly over certain products or services may be in violation of antitrust laws if it has abused its dominant position or market power. Although not all anti-competitive behavior which is subject to antitrust laws involve illegal cartels or trusts, the following types of activity are generally prohibited.

  • Bid rigging - A form of price fixing and market allocation, and involves an agreement in which one party of a group of bidders will be designated to win the bid
  • Predatory pricing - The practice of a firm selling a product at very low price with the intent of driving competitors out of the market, or create a barrier to entry into the market for potential new competitors
  • Price fixing - An agreement between business competitors selling the same product or service regarding its pricing
  • Tying - The practice of making the sale of one good conditional on the purchase of a second distinctive good
  • Vendor lock-in - Is a situation in which a customer is so dependent on a vendor for products and services that he or she cannot move to another vendor without substantial switching costs, real and/or perceived
  • Geographic allocation - An agreement between competitors not to compete within each other's geographic territories.
  • Walker Process fraud - Illegal monopolization through the maintenance and enforcement of a patent obtained via fraud on the Patent Office (the term comes from the Supreme Court case Walker Process Equipment, Inc. v. Food Machinery & Chemical Corp., 382 U.S. 172 (1965).

Its actually Microsoft that should be compared to Sega... not Sony...

PullTheTricker

    I don't think that is how that works. It would be breaking anti-trust laws if it used its dominance in the PC sector to force people to buy a 360 if they wanted to buy Windows. Show me a law say that a company cannot use its revenue to make or support another product, and then I will believe you.
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Buff-McBlumpkin

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#19 Buff-McBlumpkin
Member since 2007 • 566 Posts

If you think Microsoft's gaming devision cannot go bankrupt...think again.

There is the Antitrust law for that. Microsoft can't use their money they earned with their Windows division for their Gaming Devision. So if the Gaming Devision goes bankrupt...its bankrupt...simple as that. If they do not obey this rule they will get punished for breaking a law. And the goverment and shareholders will not be very happy with that...


A business with a monopoly over certain products or services may be in violation of antitrust laws if it has abused its dominant position or market power. Although not all anti-competitive behavior which is subject to antitrust laws involve illegal cartels or trusts, the following types of activity are generally prohibited.

  • Bid rigging - A form of price fixing and market allocation, and involves an agreement in which one party of a group of bidders will be designated to win the bid
  • Predatory pricing - The practice of a firm selling a product at very low price with the intent of driving competitors out of the market, or create a barrier to entry into the market for potential new competitors
  • Price fixing - An agreement between business competitors selling the same product or service regarding its pricing
  • Tying - The practice of making the sale of one good conditional on the purchase of a second distinctive good
  • Vendor lock-in - Is a situation in which a customer is so dependent on a vendor for products and services that he or she cannot move to another vendor without substantial switching costs, real and/or perceived
  • Geographic allocation - An agreement between competitors not to compete within each other's geographic territories.
  • Walker Process fraud - Illegal monopolization through the maintenance and enforcement of a patent obtained via fraud on the Patent Office (the term comes from the Supreme Court case Walker Process Equipment, Inc. v. Food Machinery & Chemical Corp., 382 U.S. 172 (1965).

Its actually Microsoft that should be compared to Sega... not Sony...

PullTheTricker

You're absolutely 100% wrong.

Microsoft can and does use money from other divisions to cover the losses of their game division. The "Entertainment and Devices" division has yet to turn a profit for Microsoft, it has lost hundreds of millions of dollars (a few billion, actually.) In fact, it is not expected to turn a profit until 2008 ( http://www.gamespot.com/news/6154809.html .) How in the world do you think Microsoft would be able to sustain a division that loses billions of dollars without dipping into their other divisions' profits? Common sense, Einstein.

There is absolutely nothing in your post about the anti-trust ruling against Microsoft that prohibits them from using the company's overall gross profits to cover the Entertainment and Devices division's enormous overall losses, otherwise that department would have been declared bankrupt long ago. Your claim has aboslutely nothing to do with anti-trust regulations.

Please, do some research before you post threads... this forum is bad enough as it is.

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SpruceCaboose

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#20 SpruceCaboose
Member since 2005 • 24589 Posts

You're absolutely 100% wrong.

Microsoft can and does use money from other divisions to cover the losses of their game division. The "Entertainment and Devices" division has yet to turn a profit for Microsoft, it has lost hundreds of millions of dollars (a few billions, in fact.) In fact, it is not expected to turn a profit until 2008 ( http://www.gamespot.com/news/6154809.html .) How in the world do you think Microsoft sustains a division that loses billions of dollars? Common sense, Einstein.

There is absolutely nothing in your post about the anti-trust ruling against Microsoft that prohibits them from using the company's overall gross profits to cover the Entertainment and Devices division's enormous overall losses, otherwise that department would have been declared bankrupt long ago.

Please, do some research before you post threads, this forum is bad enough as it is.

Buff-McBlumpkin

    He is also correct.

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#21 ROLFCHANK
Member since 2006 • 1085 Posts
[QUOTE="PullTheTricker"]

If you think Microsoft's gaming devision cannot go bankrupt...think again.

There is the Antitrust law for that. Microsoft can't use their money they earned with their Windows division for their Gaming Devision. So if the Gaming Devision goes bankrupt...its bankrupt...simple as that. If they do not obey this rule they will get punished for breaking a law. And the goverment and shareholders will not be very happy with that...


A business with a monopoly over certain products or services may be in violation of antitrust laws if it has abused its dominant position or market power. Although not all anti-competitive behavior which is subject to antitrust laws involve illegal cartels or trusts, the following types of activity are generally prohibited.

  • Bid rigging - A form of price fixing and market allocation, and involves an agreement in which one party of a group of bidders will be designated to win the bid
  • Predatory pricing - The practice of a firm selling a product at very low price with the intent of driving competitors out of the market, or create a barrier to entry into the market for potential new competitors
  • Price fixing - An agreement between business competitors selling the same product or service regarding its pricing
  • Tying - The practice of making the sale of one good conditional on the purchase of a second distinctive good
  • Vendor lock-in - Is a situation in which a customer is so dependent on a vendor for products and services that he or she cannot move to another vendor without substantial switching costs, real and/or perceived
  • Geographic allocation - An agreement between competitors not to compete within each other's geographic territories.
  • Walker Process fraud - Illegal monopolization through the maintenance and enforcement of a patent obtained via fraud on the Patent Office (the term comes from the Supreme Court case Walker Process Equipment, Inc. v. Food Machinery & Chemical Corp., 382 U.S. 172 (1965).

Its actually Microsoft that should be compared to Sega... not Sony...

SpruceCaboose

I don't think that is how that works. It would be breaking anti-trust laws if it used its dominance in the PC sector to force people to buy a 360 if they wanted to buy Windows. Show me a law say that a company cannot use its revenue to make or support another product, and then I will believe you.

he will not be able to show you such a law because it does not exist, nor does it make any sense at all. i took antitrust law in school and this is certainly news to me. it just makes no sense because a company is a company. they do not have to separate out a budget among its divisions. also, to the person who said sony is not an american company and does not have to obey antitrust laws here, that is also incorrect. first, i am sure there is a "sony america" division, and second the federal govt is still free to regulate commerce here no matter where a company is from. microsoft is not a european company in origin, and it still got owned for antitrust violations in europe and had to pay huge fines and were otherwise restrained from certain activity. also, just think of the reasons for antitrust law (protecting consumers mainly, encouraging competition). telling a company that has different "divisions" that if one loses money, it cannot cover from its other revenues to keep that division afloat until it is profitable, if ever, does not further the aims of antitrust law. it would discourage competition and hurt consumers, if anything.
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Danthegamingman

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#22 Danthegamingman
Member since 2003 • 19978 Posts
[QUOTE="PullTheTricker"]

If you think Microsoft's gaming devision cannot go bankrupt...think again.

There is the Antitrust law for that. Microsoft can't use their money they earned with their Windows division for their Gaming Devision. So if the Gaming Devision goes bankrupt...its bankrupt...simple as that. If they do not obey this rule they will get punished for breaking a law. And the goverment and shareholders will not be very happy with that...


A business with a monopoly over certain products or services may be in violation of antitrust laws if it has abused its dominant position or market power. Although not all anti-competitive behavior which is subject to antitrust laws involve illegal cartels or trusts, the following types of activity are generally prohibited.

  • Bid rigging - A form of price fixing and market allocation, and involves an agreement in which one party of a group of bidders will be designated to win the bid
  • Predatory pricing - The practice of a firm selling a product at very low price with the intent of driving competitors out of the market, or create a barrier to entry into the market for potential new competitors
  • Price fixing - An agreement between business competitors selling the same product or service regarding its pricing
  • Tying - The practice of making the sale of one good conditional on the purchase of a second distinctive good
  • Vendor lock-in - Is a situation in which a customer is so dependent on a vendor for products and services that he or she cannot move to another vendor without substantial switching costs, real and/or perceived
  • Geographic allocation - An agreement between competitors not to compete within each other's geographic territories.
  • Walker Process fraud - Illegal monopolization through the maintenance and enforcement of a patent obtained via fraud on the Patent Office (the term comes from the Supreme Court case Walker Process Equipment, Inc. v. Food Machinery & Chemical Corp., 382 U.S. 172 (1965).

Its actually Microsoft that should be compared to Sega... not Sony...

Buff-McBlumpkin

You're absolutely 100% wrong.

Microsoft can and does use money from other divisions to cover the losses of their game division. The "Entertainment and Devices" division has yet to turn a profit for Microsoft, it has lost hundreds of millions of dollars (a few billion, actually.) In fact, it is not expected to turn a profit until 2008 ( http://www.gamespot.com/news/6154809.html .) How in the world do you think Microsoft would be able to sustain a division that loses billions of dollars without dipping into their other divisions' profits? Common sense, Einstein.

There is absolutely nothing in your post about the anti-trust ruling against Microsoft that prohibits them from using the company's overall gross profits to cover the Entertainment and Devices division's enormous overall losses, otherwise that department would have been declared bankrupt long ago. Your claim has aboslutely nothing to do with anti-trust regulations.

Please, do some research before you post threads... this forum is bad enough as it is.

TC Pwned /thread.
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#23 seam007
Member since 2006 • 71 Posts
word of fact :
bill gates is the richest man in the world for over 10 years and now hes got 56 billion$

 ROCKINGFOOL
when was these
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familyguyvs360

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#24 familyguyvs360
Member since 2007 • 394 Posts
I remember Apple used to be richer then MS and look what happened to them!?
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#25 Buff-McBlumpkin
Member since 2007 • 566 Posts

An even simpler way to put it would be if Microsoft could only use money generated from a specific division in that exact division than how would they start new ones? If they were only able to pay for the Entertainment and Devices (gaming) division with gross profits from said division (of which there have never been) then how exactly do you plan to cover the enormous cost it takes to start that division?

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Acenso

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#26 Acenso
Member since 2006 • 2355 Posts
Funny thing is. Sony is a even more dangerous than MS in terms of monoply. 
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#27 dumfart66
Member since 2005 • 295 Posts
The onlything microsoft cannot do is use its monopoly to gain another one.  This would mean that if microsoft told stores it would no longer sell them windows if they sold ps3 it would break the law.  It can use its money on anything it wants in their company to better their company, or they would not be looking after their shareholders and in effect be breakign the law
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#28 TheBigDrat
Member since 2006 • 744 Posts

If you think Microsoft's gaming devision cannot go bankrupt...think again.

There is the Antitrust law for that. Microsoft can't use their money they earned with their Windows division for their Gaming Devision. So if the Gaming Devision goes bankrupt...its bankrupt...simple as that. If they do not obey this rule they will get punished for breaking a law. And the goverment and shareholders will not be very happy with that...


A business with a monopoly over certain products or services may be in violation of antitrust laws if it has abused its dominant position or market power. Although not all anti-competitive behavior which is subject to antitrust laws involve illegal cartels or trusts, the following types of activity are generally prohibited.

  • Bid rigging - A form of price fixing and market allocation, and involves an agreement in which one party of a group of bidders will be designated to win the bid
  • Predatory pricing - The practice of a firm selling a product at very low price with the intent of driving competitors out of the market, or create a barrier to entry into the market for potential new competitors
  • Price fixing - An agreement between business competitors selling the same product or service regarding its pricing
  • Tying - The practice of making the sale of one good conditional on the purchase of a second distinctive good
  • Vendor lock-in - Is a situation in which a customer is so dependent on a vendor for products and services that he or she cannot move to another vendor without substantial switching costs, real and/or perceived
  • Geographic allocation - An agreement between competitors not to compete within each other's geographic territories.
  • Walker Process fraud - Illegal monopolization through the maintenance and enforcement of a patent obtained via fraud on the Patent Office (the term comes from the Supreme Court case Walker Process Equipment, Inc. v. Food Machinery & Chemical Corp., 382 U.S. 172 (1965).

Its actually Microsoft that should be compared to Sega... not Sony...

PullTheTricker
um...nowhere in there does it say anything about MS not being able use Windows revenues on its gaming division. in fact why would companies have retained earnings if they couldn't use them where they were having difficulties gaining revenues?
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asmallchild

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#29 asmallchild
Member since 2007 • 2015 Posts
Sounds like a Sony fan is a bit scared. Not only does Microsoft have more money, but they're willing to spend lots of it on their gaming division, and they're spending it in the right places (hello game developers) Look at the inroads they've made in just 2 generations of their system. It has a lot to do with their bankroll and the willingness/manner in which they spend it.
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ramey70

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#30 ramey70
Member since 2006 • 4002 Posts

Sony's electronic division is profitable? is that why they're in debt in loans? They had to borrow money to cover "battery bomb." Is that why their value in the market dropped 40% because it's so profitable? Is that why they're in billions in debt? WOW, i didn't realize profitable = debt

http://en.wikipedia.org/wiki/Sony

jiggawho2006
Yes, they are profitable. Look at any of their SEC filings for the last several quarters. You should also learn a thing or two about corporate finances before you mouth off in a thread. Most major corporations carry some type of debt load. Sony is currently carrying $6.5 Billion in long term debt. That's offset by $5.9 Billion in liquid cash, $4.5 Billion in short term investments, and a whopping $29 Billion in long term investments. Their total assets number some $90 Billion compared to $63 Billion in liabilities. Sometimes the interest rates on borrowing money is actually low enough to cost you money by tying up liquid cash that would perform better invested and drawing interest itself. Econ 101. By the way, Exxon-Mobil (a company that would make Microsoft look like a street beggar), carries billions in long term debt as well. They profit more dollars in one quarter than most companies do in 10 years. They'll be glad to know you think they are an unhealthy company because of their debt load. Perhaps you should get your info from more reliable places than Wikipedia.
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cobrax25

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#31 cobrax25
Member since 2006 • 9649 Posts
[QUOTE="asmallchild"]Sounds like a Sony fan is a bit scared. Not only does Microsoft have more money, but they're willing to spend lots of it on their gaming division, and they're spending it in the right places (hello game developers) Look at the inroads they've made in just 2 generations of their system. It has a lot to do with their bankroll and the willingness/manner in which they spend it.

who has more money doesn't matter, since MS will always spend, and care far more on their OS market. BTW, MS isnt even close to the richest company.
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ramey70

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#32 ramey70
Member since 2006 • 4002 Posts
[QUOTE="cobrax25"][QUOTE="asmallchild"]Sounds like a Sony fan is a bit scared. Not only does Microsoft have more money, but they're willing to spend lots of it on their gaming division, and they're spending it in the right places (hello game developers) Look at the inroads they've made in just 2 generations of their system. It has a lot to do with their bankroll and the willingness/manner in which they spend it.

who has more money doesn't matter, since MS will always spend, and care far more on their OS market. BTW, MS isnt even close to the richest company.

Microsoft is the 7th most profitable company in the world with $12 Billion per year in 2006. Exxon Mobil is #1 with $36 Billion per year. Also ahead of MS are Citigroup, Chevron, ConocoPhillips, Bank of America, and GE.
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cobrax25

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#33 cobrax25
Member since 2006 • 9649 Posts
[QUOTE="ramey70"][QUOTE="cobrax25"][QUOTE="asmallchild"]Sounds like a Sony fan is a bit scared. Not only does Microsoft have more money, but they're willing to spend lots of it on their gaming division, and they're spending it in the right places (hello game developers) Look at the inroads they've made in just 2 generations of their system. It has a lot to do with their bankroll and the willingness/manner in which they spend it.

who has more money doesn't matter, since MS will always spend, and care far more on their OS market. BTW, MS isnt even close to the richest company.

Microsoft is the 7th most profitable company in the world with $12 Billion per year in 2006. Exxon Mobil is #1 with $36 Billion per year. Also ahead of MS are Citigroup, Chevron, ConocoPhillips, Bank of America, and GE.

thats only if you dont include private companies, and non-western ones. There are oil giants, and Medical companies that are much larger.
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ramey70

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#34 ramey70
Member since 2006 • 4002 Posts
Indeed.  One can only imagine what a few sheiks in the U.A.E. and Kuwait are worth.  
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rocktimusprime

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#35 rocktimusprime
Member since 2006 • 3721 Posts
[QUOTE="jiggawho2006"]

So, due to anti trust law, Sony can not use earning from their gaming division to support their electronic division? ...let's think...only profit that Sony made for past year has been from the gaming division, so how come their electronic division did not go into bankcrupty? How come?

ramey70
You're wrong. Sony's Electronics Division has been profitable this year. In fact, it was their gaming division that lost money. You also need to remember that in order for a company to file bankrupcty they have to post enough consecutive losses that their liabilities outweight their assets. It would take quite a few losses for a company like Sony to even approach bankruptcy.

in the real world, neither of you have any clue what you are talking about.
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cobrax25

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#36 cobrax25
Member since 2006 • 9649 Posts
Indeed. One can only imagine what a few sheiks in the U.A.E. and Kuwait are worth. ramey70
I just looked up CITGO, and their parent company Petroleos de Venezuela, made 65 billion last year. and Im pretty sure this is nothing compared to a few others.
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DrHyde

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#37 DrHyde
Member since 2003 • 584 Posts
Just to throw this out there. Didn't the anti-trust law that was supposedly going to divide MS in two get thrown out on the appeal?
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ramey70

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#38 ramey70
Member since 2006 • 4002 Posts
[QUOTE="ramey70"]Indeed. One can only imagine what a few sheiks in the U.A.E. and Kuwait are worth. cobrax25
I just looked up CITGO, and their parent company Petroleos de Venezuela, made 65 billion last year. and Im pretty sure this is nothing compared to a few others.

I guess this means Hugo Chavez is technically richer than Bill Gates.
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cobrax25

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#39 cobrax25
Member since 2006 • 9649 Posts
Just to throw this out there. Didn't the anti-trust law that was supposedly going to divide MS in two get thrown out on the appeal?DrHyde
sort of...they were severilly limited instead. What they used to do, was get the entire OS market, by disallowing software developers to make programs for both Windows and other OS's at once (particularly apple) Basically, Devs were forced into only making stuff for windows, because they couldnt afford to develope exclusively for apple. Then MS had a massive settlement and agreed never to do that again (among hundreds of other agreements) and as a result, Apple became one of the most successful companies around.
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cobrax25

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#40 cobrax25
Member since 2006 • 9649 Posts
[QUOTE="cobrax25"][QUOTE="ramey70"]Indeed. One can only imagine what a few sheiks in the U.A.E. and Kuwait are worth. ramey70
I just looked up CITGO, and their parent company Petroleos de Venezuela, made 65 billion last year. and Im pretty sure this is nothing compared to a few others.

I guess this means Hugo Chavez is technically richer than Bill Gates.

in reality no, since its not his money, and his control of how its spend is limited by the Venezuelan congress. Im sure that Venezuela actually has a deficit right now (as almost every country does). though a few years ago, some Middle Eastern oil tycoon surpassed bill gates for a short amount of time.