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[pcostabel]

"Chief Executive Steve Ballmer is planning to cut costs by $1 billion annually since the company's expenses have grown faster than its revenues for three years running, The Wall Street Journal reported in its online edition on Tuesday."

http://biz.yahoo.com/rc/040706/tech_microsoft_report_1.html

No wonder they are going for a cheap solution for Xenon...

 

[human5892]

You mean they don't actually have an infinite supply of money?

 

[neptunes]

There goes that HDD

I kid, I kid

 

[Mashing]

That doesn't have anything to do with their home entertainment division... they're losing money because the health care costs of their employees is rising. And when you have as many benefited employees as they do, that adds up.

 

[DaCocoBrova]

Litigation costs aren't helping either...

 

[pcostabel]

That doesn't have anything to do with their home entertainment division...

If they decide to cut projects where they are losing money, it could very well be the reason behind Xenon design...

 

[Pug]

Whats so cheap about the Xenon Design? Top spec processors and the most Powerful GPU available at the time doesn't sound cheap to me.

 

[Datawhore]

Their rising expenses have not materially affected their cash position. They still have more money than God in the bank.

 

[pcostabel]

Whats so cheap about the Xenon Design? Top spec processors and the most Powerful GPU available at the time doesn't sound cheap to me.

- No HD
- No BC
- 256 MB Ram
- cheaper processor (they switched from Intel to IBM for this reason)
- No dedicated sound DSP

 

[Ghost]

- No HD
- No BC
- 256 MB Ram
- cheaper processor (they switched from Intel to IBM for this reason)
- No dedicated sound DSP

So 4 power PC cores are cheaper than a celeron chip? wow please tell me where i can pick that deal up.

 

[nubbe]

Killing the Xbox project alone could save about a billion each year

 

[ge-man]

So 4 power PC cores are cheaper than a celeron chip? wow please tell me where i can pick that deal up.

It might be cheaper than a intel multi core setup. I doubt pcostabel was comparing the IBM processors to the current intel processor of the Xbox.

I think cheaper is the wrong word to use--I think Xenon looks to be more streamlined and better prepared for reaching profitablity. The GC is like this and I never thought of it as cheap.

 

[Master Chieftec]

Wanna save 1 billion dollar? Sell Rare ...

 

[neptunes]

Wanna save 1 billion dollar? Sell Rare ...

Buying exclusive rights to Perfect Dar Zero would have made more sense than a full aquisition.

 

[ravingloon]

Litigation costs aren't helping either...

Well maybe if they'd followed the f*cking laws of the country they wouldn't have been sued. The good news, however, is they got to buy themselves out of this mess by throwing money at the nitwit.

As for the actual article, those numbers could be misleading if the expenses rose 5.6 percent and revenue grew 5.4 (example). Either way, the richest company in the history of mankind doesn't need to be cutting costs when they can't for their lives ship software that isn't littered with bugs. Kill off non-profitable divisions, but their computer divisions need more
resourses, not less.

 

[Late Stage Marxist]

Wanna save 1 billion dollar? Sell Rare ...

At this point who would buy them?

 

[GaimeGuy]

At this point who would buy them?

Everyone's favorite publisher, EA. Just so they could say that they have the original Goldeneye devlopment team making Goldeneye 2 (I wouldn't put it past them). -_-

 

[Stele]

Except the original Goldeneye team long skidaddled.

 

[davis]

Didn't they just say they would spend like 3 times more money on advertising the Next Xboxen? And xbox 1 was no sluch I saw tons and tons of ads for it during certain months. Gaming mag & others in the industry r creaming in their pants waiting to get their hands on those millions in the next few years.


also wasn't Ballmer the guy would sold off a ton of his own stock in the company a year or so ago or was that the other guy can't remeber , might have been the guy who owned or use to own techtv/g4tv.

 

[Stele]

Microsoft needs to bleed. *Way* too much concentration of wealth.

 

[cvxfreak]

Blame it on the benefits.

 

[CrimsonSkies]

Again the specs on Xenon haven't been revealed. When will it just sink in?!? ahah

Also, cutting costs on the Xbox successor has everything to do with designing a console and not a PC in a box. You know the exact things people railed them on who are now suggesting they are going to deliiver an under performing console. Which way do you want it?

 

[segasonic]

Killing the Xbox project alone could save about a billion each year

keep dreaming

 

[speedpop]

My father-in-law always tells me that the more money you have, the quicker you are bound to lose it. Trusting my faith in him, since he is a millionaire (albeit VERY modest one somehow), I believe it.

Or it's like the story of two brothers who inherited $800 million from their deceased father and it all disappeared in a matter of 3 years.

 

[dorio]

The bitterness over the Rare acquisition is still strong.

My father-in-law always tells me that the more money you have, the quicker you are bound to lose it. Trusting my faith in him, since he is a millionaire (albeit VERY modest one somehow), I believe it.

Or it's like the story of two brothers who inherited $800 million from their deceased father and it all disappeared in a matter of 3 years.

How does anyone spend 800 million in 3 yrs?

 

[MoxManiac]

Solid gold houses and Rocket Cars.

 

[Che]

You mean they don't actually have an infinite supply of money?

The teamxbox guys always said MS has infinire amount of money, that's how they'll crush the kiddy Nintendo. You MUST be mistaken.

 

[davis]

will someone please tell them to fix IE with all that spyware shit I like IE and don't wanna use Firefox and mozilla!

 

[Soybean]

But Firefox is good, man!

 

[pcostabel]

will someone please tell them to fix IE with all that spyware shit I like IE and don't wanna use Firefox and mozilla!

Mozilla is the shit. Switch.

 

[john tv]

Firefox is much better than IE!

 

[davis]

I keep trying to import my bookmarks,cookies,passwords everything into Foxfire and about halfway through it keep crashing, so I can use it but not with all my IE stuff.

 

[DCharlie]

"If theres one thing that i learned from watching the first half of the MC Hammer documentary is that money never runs out."

 

[Mr_Furious]

There goes the "M$ has infinite money" theory...

I thought this "theory" was debunked by the numerous game cancellations announced by MS this year.