__/ [ Mark Kent ] on Friday 15 September 2006 08:27 \__
> begin oe_protect.scr
> Roy Schestowitz <newsgroups@xxxxxxxxxxxxxxx> espoused:
>> Microsoft Sees Potential in New Markets
>>
>> ,----[ Quote ]
>>| Microsoft has struggled to make money in countries such as China and
>>| Russia where piracy of its flagship Windows operating system and Office
>>| business software remains rampant.
>>|
>>| Microsoft Vice President Mitch Koch conceded that hardware sales are only
>>| a small part of Microsoft's overall revenues, which are dominated by
>>| Windows and Office sales, and that hardware doesn't have the high profit
>>| margins of established software.
>>|
>>| But Koch, who is in charge of Microsoft's worldwide entertainment and
>>| devices retail sales, said the company's keyboards, mice and other
>>| computer peripherals are profitable, although it continues to lose money
>>| on its Xbox 360 videogame consoles.
>>|
>>| In July, Microsoft warned that its latest foray into hardware, the Zune
>>| media player that will be built by Toshiba Corp. to compete against Apple
>>| Computer Inc.'s iPod, will not be immediately profitable.
>> `----
>>
>> http://biz.yahoo.com/ap/060913/microsoft_hardware.html?.v=6
>
> Because of how production costs work, the only way for it to be
> "immediately profitable" would be for the first ones to cost millions,
> in order to recoup the millions in development costs... The
> interesting question is about how many MS need to sell in order to be
> profitable.
Mass-production may not be an issue, but not every unit that's produce will
bring in revenue. Don't forget that there are many faulty units out there,
which not only fail to bring home the bacon, but also shatter reputation
(Microsoft trie$ hard to hide this) and lead to a considerable drop in
sales. Speaking of which, Microsoft lowered the price of thre XBox360 due to
a sinking demand. People anticipate the better, cheaper and more reliable
consoles whose release date is just around the corner.
Best wishes,
Roy
PS - please don't mind the typos. I'm in a hurry today and I have fallen
behind. I'll catch up with the bottom of the pile this weekend.
PPS - Growklaw is back into a fully-working order!
--
Roy S. Schestowitz | Prevalence does not imply ideali$M
http://Schestowitz.com | Free as in Free Beer ¦ PGP-Key: 0x74572E8E
Cpu(s): 19.3% user, 2.7% system, 0.9% nice, 77.1% idle
http://iuron.com - semantic engine to gather information
|
|
