Microsoft Q3 earnings are in*

[dobwal]

I don't see it that way. MS is making us buy something we don't want because they can. Anyone can buy XP via retail channels, it's still supported and sold. Yet MS has made it so new systems from big vendors no longer have the choice (except Dell). Vista is not an improvement over XP, so why force it on us? It's good to be a monopoly I guess.

Anyhow I ended up with a Dell with XP, which I will install Linux onto. I don't feel like beta testing Vista ATM.

MS is not forcing you or anyone else to buy anything. It made a strategic decision to maximize the uptake of Vista. Its not MS responsibilites to provide you with choice, its responsibilities is to its shareholders. Most people don't care what edition of an OS they have on their new computer as long as its the newest and its from MS and this is what sustains MS's monopoly. Does MS's monopoly provides them with greater latitude when making strategic decision? Yes, but it gained that latitude because the general population lacks the fortitude to support other OSes enough to foster competition that would force MS to offer more consumer friendly choices.

 

[Sis]

MS is not forcing you or anyone else to buy anything. It made a strategic decision to maximize the uptake of Vista. Its not MS responsibilites to provide you with choice, its responsibilities is to its shareholders. Most people don't care what edition of an OS they have on their new computer as long as its the newest and its from MS and this is what sustains MS's monopoly. Does MS's monopoly provides them with greater latitude when making strategic decision? Yes, but it gained that latitude because the general population lacks the fortitude to support other OSes enough to foster competition that would force MS to offer more consumer friendly choices.

And to add: hardware companies typically like new operating systems, since it jump starts sales. They also hate supporting multiple operating systems, since this introduces complexity in their build-outs. Multiple software configurations impacts their build-out infrastructure, test, and support at what I would guess would be a linear progression. So, dollar for dollar, it behooves them to minimize this.

Here's an ancillary question: can one buy an Apple MacBook with an older version of the OS on it? I just went to Apple.com and spec'ed out a nice MacBook Pro and not once did I see an option letting me select an older OS. Also? The damn thing was so sexy I wanted to buy it.

 

[Sis]

Was the previous quarter attributed to the startup loss of Zune? If so, now the onus is solely on Xbox.

I think you're right. It looks like it's costing Microsoft about $630 for every unit sold (US$315 million in losses with 500,000 units shipped. I would presume the majority of that is in marketing with the hardware coming in a close second...but you'd think they wouldn't be losing much on the hardware at this point. Though given the screenshots of the Elite's motherboard, it doesn't appear there's been much cost reduction. And, they seem to have solid software and peripheral sales. So what's going on?

 

[Tap In]

I think you're right. It looks like it's costing Microsoft about $630 for every unit sold (US$315 million in losses with 500,000 units shipped. I would presume the majority of that is in marketing with the hardware coming in a close second...but you'd think they wouldn't be losing much on the hardware at this point. Though given the screenshots of the Elite's motherboard, it doesn't appear there's been much cost reduction. And, they seem to have solid software and peripheral sales. So what's going on?

no, I think that would mean $630 loss per console , which is impossible so 360 is probably a fraction of those losses although I'd assume by those numbers that they are in fact still losing money per console.

 

[Sis]

no, I think that would mean $630 loss per console , which is impossible so 360 is probably a fraction of those losses although I'd assume by those numbers that they are in fact still losing money per console.

I was thinking more in terms of what it cost Microsost to sell a console, not necessarily the hardware cost of the console. Not sure that it matters, given the abstractness of the numbers...