it might be to the point we should just give up because Dmann still does not understand the meaning of LONG TERM INVESTMENT does he.
When the Xbox was first launch it was stated back then that MS knew going in that just on the Xbox it would take 8 years to just break even just on the Xbox and they stated that was with out a new consel launch that they knew they would be doing.
Xbox and the 360 both were never planned to make profit.
Xbox was an upfront cost to get into the counsel market so huge loss on it was expect.
360 goal was to stop the bleed and start to break even and use new technology.
Next gen is were I expect profit to start being shown.
Microsoft expect to be around well past our life time and to them this is a very long term project and they stated that back 8 years ago that they intended to stay in this market and start tracing it back you start noticing the operational losses for the Xbox project over the years has been reducing on average. That tells me they are on the right track.
But you still fail to understand the term LONG TERM investment. You seem to think long term is 2-3 years but Microsoft looking at long term as 20-30+ years.
That completely defies any and all sense. MS' underperformance is being excused because they:
a) have enough money
b) are exepcted to be around for a while
Your explanation doesn't simply apply to the xbox franchise. What's dangerous is that if MS is so cavalier with the xbox, imagine what else they treat similarly. Well, no need to imagine, enter the Zune fiasco, years ago and today. Same for Windows Mobile. MS can afford to be uncompetitive, late, or simply wrong, because they can hide behind the "long-term investment" and hobby/experiment excuse.
So users can happily wait on the order of years to get what other companies give them today, and MS can tell investors that they can afford to wait because it's all a "long-term investment" which is really a euphemism for "we'll eventually get it right someday."
This all means that because MS is large and has deep pcokets they have a license to fail repeatdly, both in terms of their own performance (like the previous quarter) and with consumers who look to the company for tech innovation. It's a recipe for a long, slow decline.
You've basically told us that MS lazy, that it's ok because they can afford it.
And if this is truly Microsoft's MO, then small wonder they are shown up regularly by a company half their size, half their resources, half their R&D budget - a company that seems to treat every year as do-or-die.