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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: john722 who wrote (67367)	5/15/2002 5:20:51 AM
From: Steve Lee	Respond to of 99280

Microsoft responded today by dropping the XBOX from $299 to $199. Damaging for the near term earnings of both companies. There might be some trade off in terms off increased revenues for components suppliers if the price cuts translate into more sales, but I guess Sony and Microsfot are pretty ruthless when it comes to negotiating with suppliers. I noticed that according to first call, the long term growth rate average estimate for MSFT went from 8% to 16% in the last week or so. I don't believe that is a realistic estimate but am puzzled why analysts should up their views so sharply.