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Zune parent division bleeding cash Submitted by bszlachta on Tue, 2007-01-30 04:48. article MS Zune What could be any worse for Microsoft's bottom line than its Entertainment Devices division? Its Entertainment Devices division, now with more Zune! Get ready for some gushing-from-the-jugular financial action: MS cuts 360 estimates, Xbox division posts $289m loss That's the Entertainment Devices division, which covers the Xbox 360 and software, PC games, TV platform products, mobile and embedded devices – and the Zune. No info on how much of that loss is due to the big brown boat anchor named Zune. But the strategy for the whole division, led by Xbox, is clear: burn as much cash as it takes now to force adoption, and make it back from users once competition is squashed. http://www.gamesindustry.biz/content_page.php?aid=22385 Last quarter: Microsoft lost $289 million on Zune, CE devices "Apple generated revenue of $4.061 billion on iPod, iTunes Store sales, iPod services, and iPod accessories vs. Microsoft's $289 million loss on Zune and CE devices. That's a differential of $4.350 billion." Hey, maybe the previous note's grim forecast just isn't going to happen in music players. http://macdailynews.com/index.php/weblog/comments/12433/ The Spectacular Failure of WinCE and Windows Mobile Tangential but relevant: "Entertainment and Devices group... which folds in the failure of the Xbox and Zune, lost a total of $607 million in 2005 and a staggering $1.337 billion in 2006." http://www.roughlydrafted.com/RD/RDM.Tech.Q1.07/50755EA6-A759-42FD-84ED-... Your rating: No votes yet bszlachta's blog Quote

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Zune parent division bleeding cash

Submitted by bszlachta on Tue, 2007-01-30 04:48.

What could be any worse for Microsoft's bottom line than its Entertainment Devices division? Its Entertainment Devices division, now with more Zune! Get ready for some gushing-from-the-jugular financial action:

MS cuts 360 estimates, Xbox division posts $289m loss

That's the Entertainment Devices division, which covers the Xbox 360 and software, PC games, TV platform products, mobile and embedded devices – and the Zune. No info on how much of that loss is due to the big brown boat anchor named Zune. But the strategy for the whole division, led by Xbox, is clear: burn as much cash as it takes now to force adoption, and make it back from users once competition is squashed.
http://www.gamesindustry.biz/content_page.php?aid=22385

Last quarter: Microsoft lost $289 million on Zune, CE devices

"Apple generated revenue of $4.061 billion on iPod, iTunes Store sales, iPod services, and iPod accessories vs. Microsoft's $289 million loss on Zune and CE devices. That's a differential of $4.350 billion."

Hey, maybe the previous note's grim forecast just isn't going to happen in music players.
http://macdailynews.com/index.php/weblog/comments/12433/

The Spectacular Failure of WinCE and Windows Mobile

Tangential but relevant: "Entertainment and Devices group... which folds in the failure of the Xbox and Zune, lost a total of $607 million in 2005 and a staggering $1.337 billion in 2006."
http://www.roughlydrafted.com/RD/RDM.Tech.Q1.07/50755EA6-A759-42FD-84ED-...

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The Windows API is so broad, so deep and so functional that most ISVs (independent software vendors) would be crazy not to use it. And it is so deeply embedded in the source code of many Windows apps that there is a huge switching cost to using a different operating system, instead. It is this switching cost that has given the customers the patience to stick with Windows through all our mistakes, our buggy drivers, our high TCO (total cost of ownership), our lack of a sexy vision, at times, and many other difficulties. Customers constantly evaluate other desktop platforms, (but) it would be so much work to move over that they hope we just improve Windows rather than force them to move... In short, without this exclusive franchise, called the Windows API, we would have been dead a long time ago.

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