How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 477.19

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3:59 PM EST

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To: hdl who wrote (63127)	11/18/2001 7:47:25 PM
From: David Howe	Read Replies (2) of 74651

You can still buy an inexpensive board game, but a lot of people are choosing to spend $499 to buy an Xbox in a bundle with a few games and an extra controller. Matter of fact, the initial shipments are sold out in 99% of stores. The 2nd wave of shipments come in soon and those are either sold out on reserve, or will sell out quickly. MSFT has increased output to 120,000 units per week from a previously projected 100,000. Amazing. In a couple of years this will be a nice revenue and profit center for MSFT. For now, it's an investment, down the road it's going to be an important part of their business. 12% - 15% royalties on game sales plus higher margins on each Microsoft produced game will really add up if they have a similar game base as Sony (ie. 40 million consoles) and each console owner is buying 5 games per year. 40million x 5 x 13% x $40 = more than $1 billion in royalties alone. Royalties basically go straight to the bottom line. Dave

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