Microsoft Corp. (MSFT)

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  • commenter
    Sep 08 10:03 AM
    Why Microsoft's XBox 360 Will Outsell Nintendo's Wii [view article]
    4 words: Red Ring of Death.

    I like the traditional xbox, but will buy PS3 before an xbox 360 because everyone I know has had to send their's in at some point for repair.
    Reply
  • commenter
    Sep 08 09:41 AM
    Why Microsoft's XBox 360 Will Outsell Nintendo's Wii [view article]
    Why you are WRONG on a point-by-point basis:

    1.) Kudos on your "prediction"... however - albeit a half-hearted Kudos, it can't REALLY be called a prediction on a count that common sense dictates that ALL consoles will receive price drops especially when they are as late in their life cycle as the 360 is.

    2.) True Sony is making losses on the PS3, but this IS NOTHING NEW! Using the Playstation brand as a loss-leader has been their philosophy since the inception of the VERY FIRST Playstation.....and EVERYONE ALWAYS says the SAME THING: "They'll NEVER be able to regain their losses on that investment!" Truth be told, they HAVE made those losses back on BOTH previous iterations of the Playstation(s) (PSP included)...so don't be so eager to count your chickens before they hatch! The 360 had a little more than a FULL YEAR's head start on the PS3, and Sony has already caught up to them within a margin of 5 million units; and you know as well as anyone that if they continue to build momentum with their hardware it won't be long before they are surpassed....don't forget that the PS3 has been outselling the 360 ALMOST every month this year. Future market trends don't indicate a change in that pattern any where in the foreseeable future.

    3). I Agree that the Wii is little more than a "glorified toy": I COMPLETELY AGREE with you there.....but that makes two of us! The numbers tell a different story however! While I personally LOVE Nintendo from a nastalgic viewpoint, I am COMPLETELY SICK of seeing the same old stale characters over and over and over! It's time for them to create SOME NEW IP's! But CLEARLY the ONLY thing Nintendo is interested in at the moment is making money hand over fist in an attempt to regain face lost on the abysmal performance of the Gamecube. Which is why they went with the Wii: to sell the same console (Gamecube) with a different controller interface.

    4). The 360 has a larger library of games: True, its been out longer. The 360 is easier to develop for: True, its technology is old hat and no where near as advanced as the PS3's architecture. Even Todd from Bethesda has admitted that Fallout 3 is pushing the 360 to its limits, whereas the PS3 version doesn't even utilize the system full capabilities. As did Naughty Dog, the developer's of Drake's Fortune - which is one of the most graphically stunning title to date, admit that their game doesn't use but 40 - 50% of the PS3's processing power; and they could actually could improved upon it graphically had they been given a more lenient time table. I haven't even talked about Bluray; which, because of its sheer capacity, is able to hold ALOT more textures, shaders, particle emitters that can be installed on the harddrive for a game that is graphically more aesthetic, and from an audio standpoint: more dynamic. And yes, Microsoft has spent a HUGE AMOUNT of MONEY AND TIME trying to acquire Sony's OLD PS2 Exclusives, and they have succeeded to a certain extent; the PROBLEM with this approach is that while Microsoft is busing themselves trying to acquire Sony's OLD IP's, Sony is busy making NEW EXCLUSIVE INTELLECTUAL PROPERTIES like Little Big Planet, Heavenly Sword, Drake's Fortune, Resistance, and list goes on and on. Granted Microsoft has made a few new IP's, but that IS NOT where they have dedicated the majority of their resources. They've put MOST of their energy in trying to acquire Sony's OLD hand-me-downs. This is one of a few reasons that virtually EVERYONE has been calling 2008 the year of the PS3, however, the PS3 is JUST GETTING STARTED!!!

    5). "Comparing the two machines side by side is like looking at a Ferrari next to a bicycle." The ONLY problem I have with this paragraph (and your entire thesis REALLY!) is that there is no mention of even including the PS3 in this equation...as if you have already written it off! Do NOT underestimate Sony, they are just getting started this generation where as the 360 seems to have already peeked, or prematurely eject-ulated....its HD format/360 disc....what? get your mind out of the gutter!

    6.) YOU SAID:
    "The Wii is going to have a very short production life, perhaps four years, before it is replaced by a SuperWii that will correct its weaknesses. The Xbox 360 is going to be in production for at least eight years, the last half of that life as the low cost partner to the Xbox 720 (Phoenix) in a two model range. So the 360 has a long time to catch up and overtake the Wii for total sales."
    I SAY:
    Nothing. I have not comment on this as it is PURE SPECULATION!!! Just because you made a "prediction" that was not REALLY a prediction more so than just common sense, does NOT mean that your going to be right about everything! Particularly things things this abstract.

    7.) If and/or when Microsoft plans to put a 360 in an HDTV set, what brand of TV will they put it in?, and how much will they really be making given that they will have to split royalties with the TV manufacturer? It doesn't really sound like a viable option to me but I wouldn't put it outside of the realm of possibility. However, if combining HDTV's with consoles DOES become the future trend, I would expect Sony to have the upper hand as they have a HUGE line of High-Def sets and have been making them for quite some time. Not only that, but Sony WOULD NOT have to split profits with anyone as everything would be proprietary.

    8.) I disagree that anybody - gamer or not - will EVER buy ANYTHING - by force or not - simply to be able to call themselves a "viable member of the gaming community." That is the weakest argument you've made through your entire pro-360 postulate. With the launch of HOME, it will be interesting to see how the scales will tip in regards to who will prefer which online experience. And Microsoft CLEARLY sees HOME as a threat, with the advent of their OH-SO-ORIGINAL Avatar system! And Sony did not copy Nintendo on this the way Microsoft did because the HOME project has been in development for a decade and was ORIGINALLY supposed to launched with the PS2 (same thing the motion sensing controller interface; Sony filed their patent for their version of WAAAAAAAY before Nintendo did, that's why Nintendo can't sue.Sony did it first, Nintendo copied the idea but with a different concept, or a "different" method of motion sensing i.e. IR and accelerometers vs. [Sony's ]gyro's - which work on strictly a "tilting" concept: whereas Nintendo's reads complete ROM/Range Of Motion).

    9.) There are two problems with this argument that the 360 is NOW commercially viable in Japan:

    A.) The 360 DOES NOT SELL FOR CRAP IN JAPAN! The Japanese have a sense of "National Pride" in purchasing their own products, specifically those from Sony and Nintendo. In addition to the fact that the 360 is American made, the other negative for the 360 in their (and everyone else's) eyes is the ridiculously, inexcusably HIGH hardware FAILURE rate of the 360.

    B.) The second problem is this: For the hardcore/casual gamer that wants to get the BEST POSSIBLE 360 experience - that means online and ALL - they would have to buy ALOT of peripherals. While this doesn't sound like a major problem, it really is on the count that EVERY SINGLE PERIPHERAL IS PROPRIETARY ONLY! HD Cables, Wifi recievers, Hard Drives, Online, and more!!!! In reality, If you were go and BUY EVERYTHING that the PS3 comes with RIGHT OUT OF THE BOX you would be spending 250-300$ MORE for the 360 than the PS3! Now, mind you, that was BEFORE THE PRICE CUTS from MICROSOFT! Now AFTER THE PRICE CUTS, YOUR STILL SPENDING ABOUT 50$ MORE FOR THE 360 - which has proved itself to be unreliable at best and always at risk of the Red Ring of Death - just to get it up to speed with EVERYTHING THE PS3 has RIGHT OUT OF THE BOX....and FREE ONLINE ACCESS AS WELL!!! These are facts that Microsoft seems so apt at NOT disclosing! These are also WHY THE CONSOLE DOESN"T SELL WELL IN JAPAN! They (the Japanese, as would I) would rather buy the more advanced, more reliable (RROD) hardware at a better value/lower price point, and with a longer shelf life than a system that is known to crash, and ULTIMATELY COSTS MORE THAT THE PS3 TAKING INTO ACCOUNT WHAT THE PS3 COMES WITH RIGHT OUT OF THE BOX!!!!

    And its a REAL BUMMER for me too as an American! I REALLY WISH that Microsoft had the superior hardware. But this is what happens when you rush a console to market out of the theory that being the first to launch would be all that is necessary to secure victory in this generation of the console wars! One thing that is ABSOLUTELY CERTAIN, is that THIS IS NOT THE CASE...look at Nintendo! And while I personally feel Nintendo is ripping people off by forcing them to re-purchase the Gamecube with a gimmicky controller interface, I congratulate them on their success! If I ever acquire a Wii, it will NOT be with MY MONEY! And I will hack it and NEVER buy a game from them either!; they've got ENOUGH money, they don't need mine! But REALLY HAVE NO INTEREST in a Wii. I - like most folks - want the best of the best - which entails the PS3, and the 360....not the Pii, I mean WiiWii, I mean Wii.

    Reply
  • commenter
    Sep 08 09:40 AM
    My Website
    Why Microsoft's XBox 360 Will Outsell Nintendo's Wii [view article]
    I have to agree with the rest of the comments. The XBox has a lower price point, but people were not buying the wii because they wanted a console and just picked the lowest. If that was the case then the XBOX should have sold alot more because the wii hasn't been in stock.

    I don't get how you can say the wii will only last 4 years. I have a feeling that we won't see a "SuperWii" until sales have dropped off. If you have a product that is sold out for 2 years straight, you are not going to replace it anytime soon. Whereas, the Xbox360 has dropped in price to keep sales up. The wii hasn't been FORCED to do this. When the wii starts to lose it's sales figures, then we will see a price break, but because Mircosoft is starting to hit a wall doesn't mean everyone has.

    Like others have sad before me, the same gamers that buy a Wii are not the same people that buy an Xbox.
    Reply
  • commenter
    Sep 08 08:52 AM
    Why Microsoft's XBox 360 Will Outsell Nintendo's Wii [view article]
    Most of your arguments for the superiority of the Xbox are the same arguments that have been made since the Wii was originally introduced. The Xbox has come down in price and Microsoft has introduced some compelling titles in Japan, but the rest of the argument is the same--Xbox is technically superior with more hard core games. The Wii has outsold Xbox, and in my opinion will continue to do so, because it's products appeal to a much wider audience and a much larger market. Reply
  • commenter
    Sep 08 08:28 AM
    My Website
    Why Microsoft's XBox 360 Will Outsell Nintendo's Wii [view article]
    Wii players do not become hardcore Xbox gamers after they have become bored with Wii sports and Wii fit. (if ever)
    They don't care for graphics and computing power.
    They will buy more Wii games and Nintendo will continue to rake in the money from their biggest user base.
    The balance board gives more opportunities for new entertaining games.
    Reply
  • commenter
    Sep 08 08:02 AM
    Why Microsoft's XBox 360 Will Outsell Nintendo's Wii [view article]
    I should have added: Sony's biggest problem moving units has not been demand. It has been supply. After two months of trying to buy one at the retail stores in my area (searching across two of the most populous counties in my state) I finally gave up and bought one at a hefty premium from a scalper off eBay. Reply
  • commenter
    Sep 08 07:59 AM
    Why Microsoft's XBox 360 Will Outsell Nintendo's Wii [view article]
    Wii is more attractive across more age groups, its controls are immediately obvious and accessible since the vast majority of its games use at most to fire buttons, and its games go well beyond Fit and Sports. Even its internet and friend abilities are more accessible to the average non-gamer customer.

    I can get my five year old son and my seventy year old mother together to play any Wii game instantly. Neither one has any interest in the complex controllers used by other consoles.

    Most of your arguments in favor of the 360 are technical/engineering points. The VHS/Betamax example is extremely relevant when we are talking about the average non-vertical consumer.

    I say this as someone whose first console was Pong and has owned a console of one type or another ever since.
    Reply
  • commenter
    Sep 08 07:48 AM
    Microsoft Slashes Xbox Prices to Capture Market Share from Sony [view article]
    Historically, game consoles only come in one model. In this generation, both Sony and Microsoft have different models of their consoles simultaneously making such comparisons irrelevant. Reply
  • commenter
    Sep 08 07:34 AM
    Why Microsoft's XBox 360 Will Outsell Nintendo's Wii [view article]
    Why I think yu are off the mark:
    1. The $199 360 model is the "gimped" model. It has no hard drive to make good use of Live (a point in your argument) to make very good use of the service.
    2. Sony is making losses in the hardware, yes. But the PS3 software sales now offset the losses in hardware (search for recent interview given by Stringer). PS3 and 360 capabilities are similar in terms of gaming (plus/minus online offerings). As an entertainment hub, PS3 offers more with its Blu-ray playback capabilities. 360 doesn't have built-in wifi. And the Arcade model (the now $199 model) does not come with a hard drive.
    3. People who graduate from playing Wii will not necessarily buy a 360 Arcade model to get more serious gaming. They can very well migrate to a DS or PSP, or one of the non-Arcade 360 (which is above the magic $199 price point), or, yes, a PS3.
    4. 360 does not have the best catalogue of "casual" games. It has a lot of games targetted to hardcore gamers, games that could put off the target Wii audience (in general). Additionally, Wii owners who'd buy a 360 won't necessarily be buying games at the same rate as existing 360 users -- because they are not hardcore gamers!
    5. Combining the CPU and GPU in a single chip argument - true for the other consoles. And guess what, Blu-ray drive will also come down in price as mor people upgrade their HDTV. Don't forget the cutoff date of February 2009 in the US to transition to digita TV. Yes, Wii may have less audience, but PS3 has the best propect of the 3 to benefit from ths transition. As for builing a single chip into a HDTV -- dream on. Sony has the best chance to do this and they won't. HDTVs are way more expensive than gaming console. Having a TV with built-in console gaming capability will make the TV obsolete way much faster. Who would want to buy a new TV every 5 years (and let's not get into the RROD discussion)?
    6. The Xbox Live argument only holds true for hardcore gamers. For your average Joe, being able to buy a game online is suffficient. We may need to wait 1 or 2 more generations before online capabilities to be a deciding buying factor to the masses. I also question whether the 75% of potential purchasers (those only willing to buy a console at $199 or less) will be willing pay regular subscription fee.
    7. 360 is still not a viable business in Japan. One week of good sales doesn't change the fact that the 360 is a failure in Japan. Declaring a turnaround is just utter fantasy!
    Reply
  • commenter
    Sep 07 07:47 PM
    49 Stocks For Buffett Fans [view article]
    I am a prime example of what can happen if you are away from your computer for 1 weeks time. Out hiking with all of God's beautiful creatures and my shares of FCX had a hurrican run right through them and I am trying to muck out the aftermath. There were others that shared in this pummeling as well. I welcome, even embrace a bull run even if it's a minor bear retracement. Give me half of this weeks loss back and I will be completely happy. Use my experience as a lesson. To keep Buffet's track record in tact.. it appears to be a prudent contrarian, and totally buy into weakness. I would call this incredible weakness in many sectors. I will do this to hedge what losses I have incurred. There is my Buffet plan. Now to act on it. Reply
  • commenter
    Sep 07 01:29 PM
    Slow Online Ad Growth Could Impact '09 Outlook [view article]
    LCD Digital Advertising Displays and Digital Signage More Affordable
    Small businesses are recognizing the importance of communication with customers to improve product awareness and increase turnover
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    Reply
  • commenter
    Sep 07 12:52 PM
    My Website
    49 Stocks For Buffett Fans [view article]
    Jeff -- note that it was Business Week magazine that selected the list of 49 stocks as Buffet-like. We just filtered the list further in terms of S&P and ValueLine opinions as to general appeal. Certainly, Buffet uses criteria and judgement in his selections that a simple 5 attribute screen cannot capture. Our intent was merely to help those who read the Business Week article by letting them know more about the stocks in the list, but not to judge the realism of Business Week's construction of the list. Reply
  • commenter
    Sep 07 12:45 PM
    49 Stocks For Buffett Fans [view article]
    This final 13 is most un-Buffettlike. Let's begin with the obvious fact that Buffett doesn't own them.

    A core tenet of Buffett investing is "buying what one understands". He has scrupulously avoided tech stocks as being "too hard".

    He doesn't like mining because at the end, the commodidty mined is gone and shareholders are left with "the hole".

    Buffett likes stocks with a competitive moat, preferably one with "alligators in it".

    Finally, businesses should have capable, shareholder friendly boards and management. Their interests should be squarely aligned with those of shareholders.

    There are a number of fine companies on your list. Some of which I have owned, I can't see any being strong Buffett candidates.
    Reply
  • commenter
    Sep 07 12:35 PM
    49 Stocks For Buffett Fans [view article]
    As for SLB, we had a 2m barrel of oil, short-side surprise on Friday, and now another LOOP threatening hurricane entering the GOM this week. I know Bush gave the okay Wednesday to use the Strategic Oil reserves, but these delivery disruptions at some point, overwhelm our ability to subsidize. Reply
  • commenter
    Sep 07 12:31 PM
    49 Stocks For Buffett Fans [view article]
    The short answer is that you missed the opportunity at 10:00 am on Friday, to buy under $69. With Ike projected to enter the GOM, FRE/FNM bailout projected to cost the government trillions, inflation looming, a rate cut in response to more banking troubles, even more inflation looming, and hedge fund sell-offs done, we're resuming the commodity bull market on Monday. Reply