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Technology Stocks : How high will Microsoft fly?
MSFT 472.22-1.3%Nov 21 9:30 AM EST

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To: FR1 who wrote (7882)5/23/1998 1:58:00 AM
From: Alan Buckley  Read Replies (1) of 74651
 
I've read speculation that the DOJ feels it blew the IBM case by lacking specific goals and therefore getting caught up in an endless litigation. This rings true to me based on their recent actions. It seems Klein is trying hard to keep the case limited in the hope that this will translate to a quick resolution.

This is proper strategy IMO, but will likely still be too little too late. It now appears the DOJ has little hope of forcing changes to Windows 98 until October, giving it 3 or 4 months on the shelves. At that time, forcing "downgrade" type changes is going to look even lamer than it does now.

This is especially true if it turns out to be a hit, which I believe could easily happen. MSFTs previous "stability and performance" releases, such as DOS 6.0, Windows 3.1, and Windows NT 3.51 were revenue blockbusters. Everyone who has a Windows 95 bug peeve, or wants a new device, or wants the better load times, is going to be tempted to move to Windows 98. Considerably more time than usual has been spent on the Windows 98 upgrade code, which is smart since if customers hear its painless they are much more likely to take the plunge and fork over the $90.

Around October we could be looking at a no-lose situation for MSFT. If it looks like they're winning the case, they win obviously. But even if it looks they are losing all or part of it, there could be a frenzy to get Windows98 before any injunction takes place. This is ironic since motivating people to move from their "working" systems is, by MSFTs own admission, one of their biggest ongoing problems.
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