[Am-info] Xbox losses

[John J. Urbaniak]

Paul Rickard wrote:

> ========== On 2002.05.26 07:55 AM, John Poltorak typed: ============
>
> >It estimates that Microsoft is losing $200 per unit, which means that
> >sales of 5M could create a loss of $1Bn :-)...
>
>     So they'd have to sell 5 million XBoxen a month to reach break-even
> status on the company's entire income. But by then Sony and Nintendo will
> be out of business so the price can go back up. Microsoft cannot lose
> this war. They may not win it, but they won't lose it. It's MSN all over
> again.
>

Sure they can lose it, Paul.  Microsoft missed its earnings last period by
two cents.  The stock plummeted until Merrill Lynch "Analysts" stepped in to
save their ass.  But the "analysts" have been exposed by Spitzer.  They won't
be able to pull stunts like that again.

So another losing quarter or two by the charlatan company will hurt the stock
price a great deal.  And for MSFT, the stock price is everything.

John