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Re: [News] Ballmer Defends Spending; MSFT Drop Continues

begin  oe_protect.scr 
Roy Schestowitz <newsgroups@xxxxxxxxxxxxxxx> espoused:
> __/ [ Mark Kent ] on Tuesday 06 June 2006 15:24 \__
> 
>> begin  oe_protect.scr
>> Roy Schestowitz <newsgroups@xxxxxxxxxxxxxxx> espoused:
>>> Microsoft CEO Defends Company Investments
>>> 
>>> ,----[ Quote ]
>>>| He cited the Xbox game console as one, adding that even if Microsoft
>>>| incurred $4 billion in losses before starting to see gains, that's
>>>| still cheaper than buying an existing game company like Nintendo Co.
>>>| outright.
>>>| 
>>>| [...]
>>>|
>>>| Microsoft shares tumbled in April to a new 52-week low after the company
>>>| said it planned to significantly beef up investments in many areas where
>>>| it is not dominant. Analysts worried that while such investments may pay
>>>| off in the long term, it could hurt more immediate financial results.
>>> `----
>>> 
>>>                 http://biz.yahoo.com/ap/060531/microsoft_ballmer.html?.v=4
>>> 
>>> MSFT down another 2.16% yesterday. Sad. Very sad.
>> 
>> But inevitable, I think.  It seems unlikely that they'll ever build
>> another lock-in model like the last one, so MS are going to have to
>> learn a new skill... how to compete...
> 
> They were down another 1% yesterday. It's a steady slide, Mark. I can't
> anticipate any event that will give a boost and reverse this decline. The
> Vista release? Oh, puh-leez. So far, all we seem to hear about are delays,
> system crashes, hardware incompatibilities, and other problems. The only
> thing to balance this are expensive FUD campaigns. Google, IBM and the Linux
> communities (maybe vendors too) are knocking really hard on that wall. And
> meanwhile, Red Hat's CEO confirms that MSFT still play dirty (or put nicely,
> they are extremely "aggressive"). Ballmer embodies that characteristic and
> the investors and clients can see it. It's transparent.
> 

MS's culture won't change in a hurry, but I think it'll need to change
in order for them to move to some new business models.  I note in the
reference above that Ballmer is still talking about "winning", in this
case, in the games console environment, so I think they're going for the
same play again.  This time, it won't work, of course; although be aware
that he compared the cost of the xbox (billions in losses) with the cost
of possibly buying Nintendo, saying it would be less expensive.  Well,
it might, or it might not, and we'll see.  I cannot see MS ever being
particularly successful in Japan, and in the UK, they're about evens
with Sony at the moment, but don't have Sony's positive image.  

As you say, the slide will likely continue, with a few kicks and starts
as usual, but the only way from here is down.

-- 
| Mark Kent   --   mark at ellandroad dot demon dot co dot uk  |
There is brutality and there is honesty.  There is no such thing as brutal
honesty.

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