In this economy, if you're playing catchup to competitors you really can't have growth AND large profit margins. Why is that not obvious?
XBOX brought in 5 billion, and after all development costs, marketing, operating expenses, investment in research, etc., they are STILL left with 200 million dollars.
What's the problem here? Shareholder value? (as in the mythical/speculative value of MSFT, because OF COURSE they don't want/care for part of the profits/dividends)
If the money being invested in research has a good return - i.e. a great product/service is created - then you will grow.
Chopping down the employees here is a horrible move. Besides crashing employee morale into the ground, losing hard-to-replace developers/staff, it also generally gives off shitty vibes to consumers.
People will think why invest more into a failing entity? I can see people worried about the future of their "purchases" (if you can call them that these days).
This announcement so soon after XBOX had to start yelling "we are not shutting down" from the roof tops doesn't look good.
XBOX brought in 5 billion, and after all development costs, marketing, operating expenses, investment in research, etc., they are STILL left with 200 million dollars.
What's the problem here? Shareholder value? (as in the mythical/speculative value of MSFT, because OF COURSE they don't want/care for part of the profits/dividends)
If the money being invested in research has a good return - i.e. a great product/service is created - then you will grow.
Chopping down the employees here is a horrible move. Besides crashing employee morale into the ground, losing hard-to-replace developers/staff, it also generally gives off shitty vibes to consumers.
People will think why invest more into a failing entity? I can see people worried about the future of their "purchases" (if you can call them that these days).
This announcement so soon after XBOX had to start yelling "we are not shutting down" from the roof tops doesn't look good.