MSFT Extreme Makeover bows out on Post #100
Category MSFT
Bookmark :
Bookmark :
Wow. And I thought IBM's position on Lotus Notes was 'sub-optimal. MSFT Extreme Makeovers final post can only be described as a final coup-de-gras for MSFT stock holders, and Ballmers' credibiity. Never have I seen so many compelling arguments to sell on MSFT in one place.
Catch all its well-reasoned argument here
Comments
From my perspective he seems to have some conflicts.
1. He thinks that solid revenue growth minus share payout is a bad thing. Well he would, but not everyone will.
2. He thinks the game industry would have made money without the xbox. Dream on. xBox is, including games, a profitable business. Sony doesn't sell games, contast the PS3 "hole".
3. He dismisses the fact that Vista has already recouped the development cost +aprpox $1Bn and is now into pure profit.
4. He clearly misunderstands the heavy hand of government monopoly "groupie" mindset. Anyone from IBM who was there in the late 70's to the early 90's could tell him different.
OK they have screwed up on many fronts, but NOT in revenue generation.
This guy seems to think that MS can be "all things to everyone". Clearly this is not true. If they even attempted to be then the EU competition commission would then start snipping away with their scissors in quick time to divest MS of those lucrative add-ons.
MS will have to change. However not on it's investers timetable. I sense a level of frustration at having no leverage with the management....
Posted by NeilT At 12:22:28 On 12/06/2008 | - Website - |
MSFT has suffer $6 billion in losses on Xbox. It's only recently profitable on a quarterly basis because of an accounting trick (they backdated the $1 billion write down for the red ring errors.)
He was never the only one that thought revenue growth without payout was a bad thing. LOOK AT THE SHARE PRICE. It's flatlined for the last 7 years. You would have been better off putting your money in an interest-bearing checking account than investing in MSFT stock.
Did you even glance at the litany of references he provided?
Posted by Nathan T. Freeman At 01:19:03 On 13/06/2008 | - Website - |
xBox not profitable? No we all know that, but xBox games are wildly profitable.
Now if you can dream up a scenario where you can sell xBox games without an xBox I'll accpet the $6 Billion black hole subject.
Hint to Sony, buy a profitable PS3 games company...
Posted by NeilT At 18:01:03 On 13/06/2008 | - Website - |