Goldman sacks Microsoft

WharenPeace · 2010-10-06T11:21:23Z

With the recent downgrading of Microsoft shares by Goldman Sachs Lazygamer.net explores the possible impact of the downgrade on gaming.

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5683d ago

v0rt3x5683d ago

haha I love the wordplay in the title! xD

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pangitkqb5682d ago (Edited 5682d ago )

If Microsoft suddenly left the gaming world (which I strongly doubt will happen), all of gaming would suffer. The fact of the matter is that the competition between Sony and Microsoft have pushed both to increasingly higher levels of quality.

Even though I prefer my PS3 to my Xbox 360, I see how the popularity of Xbox Live has prompted Sony to make the PlayStation Network a better place to game than ever before, as well as inspiring them to make better exclusives than ever before in response to challenges in the multi-platform area.

Oh, and what moron disagrees with the fact that competition results in better products?

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nickjkl5682d ago (Edited 5682d ago )

i wouldnt say that entirely

there are alot of people who say this generation sucks compared to last generation signaling last generation had better quality than this generation

while competition is good in order for it to be a real competition you know both sides have to be competing and one side doesnt look like its competing at all

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yewles15682d ago (Edited 5682d ago )

Your whole comment falls flat on it's face JUST BECAUSE...

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pangitkqb5682d ago (Edited 5682d ago )

Nick, You are absolutely entitled to the opinion that this gen isn't as good as last. That is a subjective point of view and you and anyone else is free to have it. I personally feel that this gen is more engaging than last, particularly with the highest ever penetration of mobile and online gaming features, but that is just my own subjective opinion. In other words, there is no right or wrong in siding with either generation. It's simply personal preference. Oh, and it isn't clear which side you feel isn't competing, but I can maybe guess.

yewles, you are a master of reason and debate my friend, ahhaha :) I just don't know how I could ever hope to refute your unequaled logic! Rock on.

@ 8thnightvolley, I agree. Why is the PlayStation Network awesome lately? Why has it improved so quickly since launch in late 2006? Because Sony needs to compete with Xbox Live and is doing a great job at it! I LOVE the PSN.

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Moentjers5682d ago

If all developers would only have to work on 1 system and try to max it out instead of keeping the lowest quality console happy (no brandnames here), overall quality would be much higher with 3 party.

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dabri55682d ago

That's how it is every generation. People who really got into gaming will always think of their first generation as the best generation. For me, the Playstation/ Saturn/ N64 generation was the best followed closely by the Snes/ Genesis gen. The best part of last gen for me was live as it was really when I first started getting into online gaming. I personally feel the games in general are way better this gen compared to last gen.

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evrfighter5682d ago

competition is what drives the industry. Sony wasn't buying studio's out of the goodness of their heart.

They wanted to compete with M$.

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xboxlj5682d ago (Edited 5682d ago )

pogibaldy is 100% correct, its basic economics. I prefer my 360 to my ps3, but I know that gaming would suffer if Sony suddenly got out of the gaming business. Msoft and Sony competition is good for us gamers. If everyone but 1 company left the gaming industry we would be screwed.
Also anyone that says this gen is worst than last gen is absolutely crazy.

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Lastcall5682d ago

To be honest...I'd love to see Apple get involved in Console gaming..I'd definately support them more then Microsoft..They make awesome products and would be more on an even keel with Sony in terms of tech and quality..Hope it happens.

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dabri55680d ago

Do you know how many apps get rejected or removed after release from the Apple store? They a very strict censorship policy so that they can keep the Apple environment "clean". Games like God of War would not be possible on a Apple product without some heavy cuts to content because of this. I would fear what would happen with the industry if they entered the market.

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GWAVE5680d ago (Edited 5680d ago )

If Microsoft left the scene, someone else would fill the gap. Apple or SEGA or some other contender would come out with a console. Honestly, Microsoft has brought innovations to consoles, but they really haven't brought out a lot of games. Try to name more than 5 AAA games that came out of Microsoft (not their studios, most of which have closed or left)

Also, I REALLY wish people would quit chanting "competition is goooooood for the industry!" Yes, it CAN be good, but it can also be BAD. Are you all aware the Activision's many idiotic practices are in the spirit of competition? Are you all aware that timed DLC, online passes, and needless motion controls are in the spirit of competition?

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dabri55680d ago

Without competition, motion controls could become mandatory because there wouldn't be an alternative. Imagine if it was just Nintendo. You would only play with motion controls. What option would you have? Companies will try different strats. Its the fact that there are other options for the consumer to choose that causes the industry to grow and develop in good ways. The best way to tell a company their idea is dumb is to not buy it and to instead go to their competition.

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+ Show (8) more repliesLast reply 5680d ago

8thnightvolley5682d ago (Edited 5682d ago )

i dont see how ppl would disagree with you as far as i see.. its just pure immaturity, no matter how hate on n4g goes MS going out of gaming is not a good thing.. hell clearly coz of them gaming has improved in one gen so fast we would only dream to have this level of gaming at this time surely online gaming would be almost nada if MS was not here, sony has made such beautiful game too coz of it gaming is growing coz of the competition, and if MS and sony and even nintendo are here for next gen the TECH we would have in the next consoles would be out of this world ... TRUST ME.. so i would not like to see MS close shop on gaming .. coz its help bring

1 prices of consoles down due to brand competition
2 improved the quality of games and advancement of tech due to competition
3 gamers always win coz we have a CHOICE to be green(ms) or black(sony) of white(wii) or hell all the above.

if we dont have them all fighting to have us, one company will dominate and dictate a price we have to kill to buy a console or grow old to see games like uncharted2 or God of war3 or halo reach...running on some serious tech power in our homes today.

MS dont dare go nowhere.

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mirroredderorrim5682d ago

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RussDeBuss5682d ago

competition is a good thing, if it was between just sony and nintendo the ps3 wouldn't have been as powerfull as it is and sony may not have gone the way they have.

would have been nice for them to be in competitoon with a real games company, like sega or something.

ms is not a hardwear company which shows in the 360, but their software side if the 360 is good. the thing about ms though is they try and take the easy route "our product might not be the best, but rather spend time, money and effort making it the best, we will take the short route and waste billions on the hype machine instead, we're m$, moneys no problem"

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+ Show (1) more replyLast reply 5680d ago

jellybalboa5682d ago

microsoft will never quit the gaming division they make toooo much money from xbox live, shares in any major company drop when the company states they have made a profit because it is the best time for share holders to sell because its the best time for them to make a profit this plummets the share prices. thats how i do it and always have done.

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5682d ago

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ndibu5682d ago

We already read how this guy suggested microsoft split xbox from the main company because the main company is dragging it down.
Now these retards come around and suck up to the Sony crowd by spinning this yarn of nonsense. I used to be a fan of LazyGamer, then their n4g hit-seeking flamebait started to take over.
Its a shame. How do you go from "its wildly successful and profitable" to "its plausible they may drop 360" I mean come on lazygamer, they turned a profit last 2 fiscal years, live does 1 billion worth of revenue...why would they quit now?

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WharenPeace5682d ago (Edited 5682d ago )

If the division that was responsible for the Xbox and peripheral entities were separate from the entire E&D division, then I would agree with you, however regardless of profits posted by Xbox live, or that the xbox is finally in the black, the entire E&D division has been in the red for a while now. In fact, in the last quarter they lost nearly $200 million. Microsoft will have to cut the fat so to speak, and although I doubt they'll drop the xbox now, they have overextended themselves with the Zune and potentially their new smartphone.

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dragonelite5682d ago

Again developing a new mobile platform isn't cheap anyway.
trying to make bing compete against google.

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cardgenius5682d ago (Edited 5682d ago )

Yeah but theres a difference between Revenue and Profit. Of that $1 billion, they probably profit $200-400 million. Maybe even less. But, even though their making "profit" now, all that "profit" is just them making back the $5-6 Billion theyve lost on the Xbox since the start. Shit, the whole Entertainment and Devises division have lost almost $10 Billion in the 9-10 years its been around.

If Kinect fails, dont be surprised if they drop out or pull a Sega and drop a new console out of nowhere.

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Non_sequitur5682d ago

You forgot to subtract dividends.

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Anon19745682d ago (Edited 5682d ago )

Considering what Microsoft puts into the gaming division, and their revenue generated versus actual profit - it's downright tragic compared to Microsoft's other business. It's like me investing 10 million dollars and after a year saying, "Hey! I made $100 bucks! Awesome!"

Analysts after analyst has commented on the Entertainment division and how it's simply not worth it considering what's spent on it, that the time and money would be better spent on projects that show a greater return - like Microsoft's software business.

Edit: And I noticed above, with Mike134nl's post, that was the quarter before. Booch is correct that the Entertainment division is back to posting loses again.

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King-Leonidas5682d ago

downgrade in gaming? no more downgragings please

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YoshiMeetsU5682d ago (Edited 5682d ago )

Source: BusinessWeek

This post was submitted by Bobby Kotick.

Now read the original source.

http://www.businessweek.com...

"Concerns over the longer-term sustainability of the Windows/Office franchise have clearly weighed on the stock," the analyst wrote in a note to investors."

"Microsoft could benefit from bringing to market an appealing Windows-based tablet in the near term," she wrote."

Not a single mention of gaming or the EDD division.

EDIT: Just read the comment section and the author has exposed his intent. PS3 fanboy confirmed.

Disagree with facts all you want.

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Sheikh Yerbouti5682d ago

Concerns with gaming are valid and have been around for awhile. People need to remember that the margins MS has with Windows/Office blows away what they can make with the 360. So the question shareholders have is "Why bother?".

I doubt the XBox brand is going to go anywhere. Although shareholders have strongly questioned the wisdom of Microsoft's 360, Zune, etc., it is the other areas of EDD, more than the 360, that is the issue. Plus
Microsoft has committed itself to three console generations. But if this anti-EDD sentiment grows, the 360 can go the way of the Kin. Doubtful in the short-term, but possible in the long term.

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Pennywise5682d ago

I know Yoshimitsu likes to spin with his sword, but you are doing him shame trying to spin with this news.

“A coherent consumer strategy that could involve paring back investments and/or divesting more peripheral assets such as gaming”.

From the article posted yesterday from the same sight you linked. The article that this lazy gamer article is based on. This is a duplicate piece of news for sure, but no work of "fanboys" like you are implying. This is big boy news that xbox fans couldn't begin to grasp (Obviously).

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gamerdude1325682d ago

Ah, who cares? Gaming isn't gonna die because Sachs is acting like Sachs.

BTW, great wordplay.

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divideby05682d ago (Edited 5682d ago )

wont impact the profitable gamming divison, until gamers like me, a day one charter gold member of Live (how many around here can say that) who is NOT renewing Live

realize I want to PLAY games online and not pay for a service which offers me stuff which I can get for FREE on our TV with inet widgets, our PC (also hooked up to the HT system, Cable DVR and our PS3)

MS will NEVER let gaming be free like PC or PSN, because they clearly know they will lose subscribers

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YoshiMeetsU5682d ago

You've been taking the pizz on Xbox every time I see you post.

Sell it already.. nobody cares and frankly XBL could use one less douche.

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divideby05682d ago

I totally enjoy my 360 and the games I buy for it..

cant handle the truth....I can see.

if MS had the ballz they would make gaming free for Silver.

Gamers would win, but MS knows their Live subs will drop

psst.. add me to your ignore list... you need help

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dcbronco5682d ago

There is no reason to believe Microsoft would leave the gaming industry. The Lazygamer is being just that. Lazy. If they thought for a second they would have to ask themselves why MS would leave gaming just as they have gotten themselves in a position to really profit. They are making a profit on the console, software and should on Kinect. Also a huge profit on Live. People who use E & D profits as a sign of Xbox health obviously don't know what E & D is. There are many products in that division and Xbox and Live are the main ones making a profit. 400 million a year is spent on Windows and Office advertising and charged to that division. With none of the money from sales going back into it. And that division represents a very small portion of MS revenue.

Downgrading MS is just another example of the fraud that is the stock market. A company makes record profits last quarter. They are on the verge of releasing a highly anticipated product. They are releasing windows 7 Mobile soon. Which has been said to be a big improvement. The 360 is the best selling console in the world the last few months. All of a sudden MS is a hold. During the entire time the 360 was struggling and Vista was the OS they were a buy. Goldman is trying to drive the price down and get people to sell. Because they make money on the transactions. Just before the price goes back up with Kinect's release they get there preferred customers and friends back into MS stock. At the numbers they invest they make millions. Once they price is back up Goldman pushes it to the public again.

The same games that created the current financial mess. They pushed housing in every part of the media. The banks set up ninja loans and sub-primes. They fail and the media pushes the idea that a small percentage of home owners can ruin the housing market. And nothing save us. Odd they never considered moving the late payments to the end of the mortgage and dropping the rates back down to 5% so that people could actually afford the homes they were in. Instead they allowed the companies and banks to fail, took government money and allowed a bunch of executives walk away with billions.

Anyone that invest in the market is crazy. Your moneys safer in a mattress and always has been. All of the talk of staying for the long-term is just to get you to except your losses. As they get rich with your money.

http://www.csmonitor.com/20...

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PantherDST5682d ago

It matters not that MS holds the second spot in consoles sales, or even that XBL is a profitable service for them. What does matter is the overall profit margin for the ED division. My guess is that we've already seen the impacts of this with a decline in 360 exclusives and the raise in XBL costs. Not to mention the efforts MS is taking to expand its gamer base into the casual market with Kinect.

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dcbronco5681d ago (Edited 5681d ago )

Pretty much everything else in that division loses money. Xbox is making a profit and there is no reason to believe that will do anything but improve. If anything will be eliminated it would be the things that don't make a profit. How completely stupid would it be to drop a profitable product in a growing field. As far as exclusives go, they don't need them as much. They sell millions of copies of other peoples games. They get paid for each sold. And as long as they have the big franchises on the 360, the little titles don't matter. Sony gets a lot of exclusives that don't sell a few thousand copies. The ones that do sell are made by Sony so the level they need to sell at for them to make money is much higher. If you make an exclusive 30 million and it sells 1 million copies, the dev isn't making a ton of profit. After sale prices, retail, shipping, pressing the disc, buying the disc, advertising and royalties, there's not a lot left. And then you pay taxes too. That's why so many devs have gone out of business. And they raised the price of Live because if more people are on Live while the PS3 is free, why wouldn't they believe they could get more now that it's clear Sony has to start charging. The market price has changed. MS made over 14 billion in profit last quarter alone. They have well over 30 billion in cash on hand. They have zero financial problems. The source article was strictly about continuing stick it to regular people.

And judging from all of the disagree I got the public still can't wait to get stuck again.

Enjoy.

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Smootherkuzz5682d ago

Goldman Sachs bought and sold our company to another Wall Street based company which in 2 yrs sold our company to a place outside of the US at the start of the recession and we are still tryng to find jobs.I guess this is how Wall Street based companies make their money by stepping on backs of others. Goldman Sachs Sucks

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air15682d ago

I don't get it panther. So because micro is trying to expand into the casual, they are raising the price for live, and they don't have as many exclisives as sony who has more studios than ninetendo and micro combined is your proof that they are going under? And them being 2nd while making a profit doesn't matter? Wtf?

The only person that seems to know what they are talkinh about is dcbronco

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