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Technology Stocks : How high will Microsoft fly?
MSFT 479.20+0.2%Jan 9 9:30 AM EST

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To: David Howe who wrote (56940)3/31/2001 5:14:52 PM
From: dybdahl   of 74651
 
Ameritech uses the TV show "Big Brother" as a reason to get ADSL over here. They transmit video with 500kbps, which you need an internet connection of at least 1Mbps to get with full quality.

Currently, most computer games run fairly on an 28.8kbps connection, and with 64-128kbps they run quite smooth. You don't need broadband to get games running smoothly, but, of course, you can shorten development time, if you don't need to reduce bandwidth demands so much. That means that games could be cheaper or better if there's enough bandwidth, and that's where Microsoft comes in: A partnership with broadband companies makes the broadband companies a marketing tool for Microsoft, and Microsoft provides a sales method to the broadband companies. If Microsoft succeeds, they will probably also have the customer base with the best internet connections, which makes their games better and cheaper than the competitors.

Quite clever. They just have to pass the first test: Make X-box get a significant market share.

Lars.
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