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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: David Howe who wrote (54890)	1/5/2001 4:20:47 PM
From: Dave	Read Replies (1) \| Respond to of 74651

Thanks for your continued unbiased opinions. You're most heartily welcome! Okay, granted, my off-the-cuff remark that "this pig won't fly" may be ever so slightly tarnished with bias, but just think of that tarnish as a fine patina and it will seem more palatable. But my more substantive comment that MSFT will "lose money on every XBox sold" is fact. Every game machine maker loses money on every unit sold and hopes to make it up in software sales, including Sony, Nintendo, and Sega. It's the nature of the business. Johnd asked if he was missing something when he said MSFT expects to sell 20-30 million XBoxes at $300 a pop. I was just trying to help him out. If they only lose $50 per XBox, a very conservative estimate, they would lose $1-1.5 billion. But, if I may offer some more biased guidance to ease the pain, fortunately for MSFT, there's no way they're going to 20-30 million XBoxes because as evidenced by WebTV's failure in the marketplace, nobody wants Windows running on their TV. It's just too hellish. Dave