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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: EnricoPalazzo who wrote (40410)3/14/2001 11:04:08 PM
From: Rick  Respond to of 54805
 
"The Xbox has the potential to be such a move, if -- AND ONLY IF -- MSFT can create some sort of switching costs. It is not obvious to me how you do this, but that is what we should be watching for."

Subsidizing the cost of the box is actually lowering the switching costs, not raising them. Also, the popularity of any box is dependent on the games it plays. Therefore, the box maker is, to a large degree, dependent on the quality of 3rd party produces.

- Fred


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