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To: - with a K who wrote (51047)	2/15/2004 5:31:34 PM
From: Carl Worth	Respond to of 53068

yeah, all of the companies lose money on the hardware, but they make it up in spades on the software, that's why the long run is what will matter, not the initial losses on the decks or the profit or loss results in the initial stage of the venture however, as i said, xbox probably won't ever affect MSFT's bottom line to any great extent...ERTS, which is the clear leader in the field of home console software, has free cash flow of just under 600M a year....MSFT makes that in a couple weeks DIS run well and debt free could generate over 4B a year in FCF within a few years...not a bad addition to MSFT's business considering they can buy it from not much more than cash on hand by the time the transaction would close