Microsoft seen lowering outlook as economy weighs Options

[Xbox-Scene]

Microsoft seen lowering outlook as economy weighs Posted by XanTium | October 21 15:37 EST | News Category: Xbox360

From iht.com: [QUOTE] Microsoft Corp is expected to cut its forecasts for the remainder of the year as customers curtail software spending amid the economic downturn. Microsoft's shares have plunged to an eight-year low and its rivals such as SAP AG have warned of tighter demand. "Given the current macro-economic situation, I think there is an expectation that it will use this opportunity to bring down guidance a little bit," said Pat Becker Jr., portfolio manager at Becker Capital Management. Microsoft is the largest holding of the $62 million Becker Value Equity Fund. The December quarter is usually known for being a busy period for Microsoft's entertainment and devices division as consumers snap up Xbox 360 consoles and video game titles during the holiday shopping season. The company cut Xbox 360 prices in September, lowering the price of its entry-level console to below $200 -- a key mass-market price level that Microsoft has said historically accounted for more than 75 percent of all machine sales. "It looks like we are going to have a really difficult holiday season with the U.S. consumer pulling back a lot. So the Xbox business might be weak going forward," said Morningstar analyst Toan Tran. [/QUOTE] Full Story: iht.com

[manatarms25]

I would think this holiday season will be strong with the arcade console being the cheapest option out for a game console. The Arcade unit is under 200 bucks and the great games just keep coming.
I not a complete fanboy but I do think it will be a good holiday season for the 360. The Wii seems nice at first but... mine has not been played in 2 months! My kids watched me play Fable 2 this evening. Not interested in the Wii 12 games later they still dont play it much at all cant get the son off my 360 though

Back to Fable 2... (This is a great game)

[HotKnife420]

They can lower their outlook all they want; I'd still rather not use it as my mail reader

Seriously, tho, at $200, the 360 is very affordable. I think they should worry more about reducing the MSRP of the average game, as lesser titles don't warrant a $59.99 tag, IMHO.

[ruli00]

Edit: oops wrong topic

This post has been edited by ruli00: Oct 22 2008, 03:28 AM

[g8crapachino]

The lowered outlook is about Microsoft as a whole, not just the Xbox division. In case you guys haven't noticed the economy is in the crapper and people are cutting back on spending. The constant stream of negative news stories has got people on edge and even Microsoft is taking precautions. In situations like this it's always better to lower your outlook then come out ahead then to aim high and come up short.