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Microsoft stock at 10-year low

Microsoft stock just hit a new 10-year low.

Analysts cut forecasts for Microsoft, citing "downward pressure on PC unit sales.".

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krakdol3312d ago (Edited 3312d ago )

This could spell major trouble for microsoft, especially since it comes after multiple failures like Zune, the Yahoo bid, Vista failure, Xbox 1 failure, the RROD, the Xbox Live downtime failure, and the 360 failure to gain market share worldwide vs the PS3 (although it's doing ok in one country, the US).

I wouldn't be surprised if they try to cut their losses by giving up on gaming much sooner than expected. After all, they were outsold by the PS3 last year and this year too, and the 360 is basically dead or dying everywhere except in the US.

If MS doesn't intend to stop with gaming, why was there only one AAA exclusive this year (Gears 2) compared to so many on PS3 (MGS4, LBP, Resistance 2, Wipeout...). Why did they close studios like Ensemble too ? They need to cut their losses right now.

P4KY B3312d ago

All stocks are low.

GM, Ford, Sony, every bank on the planet.

YouNoob3312d ago (Edited 3312d ago )

i hate when little kiddies are trying to talk business. Sony share is down to currently $20.92 from 57.09 in mid 2007. MS is down to 19.32 from 37.06 in 2007. take out a calculator and see which one is the bigger loss. according to #1 logic, that would mean sony has to close down business immediately. and many others too.

go play lbp (which btw isnt a AAA game by any standards).

krakdol3312d ago (Edited 3312d ago )

@Noob : your pseudo suits you perfectly. LBP is AAAA, otherwise Fable 2 is CC- . Go check metacritic, a website you like so much since it's full of MS fanboys like you.

I'm sorry if I hurt your feelings and your love for microsoft, still MSFT is at 10-year low, I can't do anything about it. It clearly reflects MS multiple failures and troubles.

I work in banking and financial services, so don't expect teaching me anything on the subject.

OOG3312d ago

I work in the banking industry bahahhahaaha yeah....you must be one of those fools who brought down the banking industry then if you think that MS is in any worse of situation than any other company in the world right now.

Anon19743312d ago

Sony's down the same as any other stock, but since the stock is Japanese there is foreign exchange to factor in as well. The current weakness in the US dollar is responsible for almost 30% of the decline in Sony stock - just like every single other company that's valued based off the yen (check out Pioneer, for example). Sony and Microsoft when you take away the foreign exchange are down almost exactly the same - down about as much as the market as a whole.

"I hate when little kiddies are trying to talk business."
Indeed...

Rigmaster3312d ago

Not really trouble for Microsoft.

But it is the end of the Xbox fiasco.

Right now Microsoft has a hiring/pay raise freeze and they are going to be doing massive cost cutting on the order of 500 million to a billion dollars across the company.

MSFT share prices have been flat to down for eight years now. The Xbox and other products outside of the core OS and office software was supposed to create huge new revenue streams for the company to get the stock moving upward after the company saturated their core monopoly market segments.

Over the past seven years the Xbox fiasco has cost the company over seven billion dollars for absolutely nothing of value. The 360 is selling at virtually the same poor rate worldwide as the first Xbox - 25.5 million over 3.5 years vs. 21 million over 3 years for the 360. And it did absolutely nothing to stop BluRay from becoming the next gen movie format.

Microsoft is spending tens of billions on stock buybacks to prop the stock price up and looking at tens of billions of dollar purchases of companies like Yahoo.

There is going to be no hurried follow up console to the 360. The 360 will be left to slowly die out in the market. Microsoft has been one by one shutting down their first party development houses over the past couple of years to now they only have about three.

The days of Microsoft being a company willing to throw unlimited amounts of cash at a product or market are over.

akohut3312d ago

Lol @ Krakdol working in banking and finance other than putting his allowance in his piggy.

All stocks are down. ALL of 'em. Guess what? Sony is at record lows - do you predict them to get out of the gaming business as well?

Blades083312d ago

Microsoft buying back stock is normal for a company with lots of cash, they buy low then sell high to generate profits. Yes, companies buy and sell stock too to generate money just like you and I would. It also gives the company more control back when they own more shares of stock. MS stock is flat because MS is controling the stock, if you look at the the transactions you will see a good volume of purchase of MS both buying and selling keeping the stock stable. If you check SEC filings you will see the management MS of constantly buying and selling. I was suprised to see Bill Gates when he was at MS constantly doing this and making tens of millions of profit a pop which contributes to his personal net worth.

ultimolu3311d ago

It won't be the end of Microsoft but it'll teach them a lesson about throwing money around like candy.

The Lazy One3311d ago

M$ makes a profit off the "xbox fiasco" now.

baum3311d ago

"go play lbp (which btw isnt a AAA game by any standards). "

You call everyone else kiddies and yet you use the "ITS AAA!!!" fanboy moniker.

That speaks volumes of your intelligence, hypocrite.

Tarasque3311d ago

This site is truly awesome.

@krakdol thanks for the great laughs i really needed it today, nerve of some people.

YouNoob3311d ago

yeah, why not...

@krackdoll: you just proved yourself to be the super NOOB. So metacritic decides what triple A is? LOL. sure. you work in financial and banking? LOL, haven't we just all seen how useless you folks are? i own a real business that makes real money, thanks. so a share losing over 60% is doing better than a share losing 40%? sure...

@darkride: another wanna be financial hero... we just sold $300k this morning due to the highest exchange for the dollar in many months. you said what? go away little kiddie.

@baum: and now to the last NOOB. you're not old enough yet to read properly? i replied to the banking noob about him mentioning AAA. Triple A ratings are not determined by review scores, LOL! I got my name in the credits of over 20 games, so please, do not talk about things you dont know.

Not expecting the 3 of you to understand what I'm saying, as you are all still too little. but why not try, it's all about paricipating, LOL!

+ Show (10) more repliesLast reply 3311d ago
Deviant3312d ago (Edited 3312d ago )

....just wait for fanboys spinning this story as if they know what it is all about.

ultimolu3312d ago

They're already doing it.

B-B-But Sony stocks are down too!

Newsflash! All companies are in a bit of trouble right now! It's affecting everyone!

Sharingan_no_Kakashi3312d ago

Didn't they just say they were recession proof?

Death3312d ago

You don't know what stock is, do you? This isn't about the anount of Xbox 360's available at retail, it is about the value of the shares in the company.

-Death

Sharingan_no_Kakashi3312d ago

I don't understand a word you're saying so I'll just leave it at that.

Blades083311d ago (Edited 3311d ago )

The "gaming industry" seems recession proof from a recent article posted at N4G. MS and Sony have other products such as software and movies that are not. So it's not the entire company that is recession proof. You guys realize the actual stock certificates are worth less then a penney. The price of a stock is basically what the initial IPO (company and broker) think they can get from them based on company performance and the market, then the rest is based on performance, supply and demand, and emotion. So say something bad happens (like war) then a lot of stocks go down for that reason alone or if a virus is found then a lot of software companies stocks go down even if a company is doing gangbusters.

+ Show (2) more repliesLast reply 3311d ago
Death3312d ago

Check your 401k, ALL stocks are down. We are in a recession gang.

-Death

OOG3312d ago

yeah...but you know most N4G members they specialize in everything..... lol wait till they start throwing fictional numbers around.........

Anon19743312d ago

Yes, all stocks are down - but not all stocks are being downgraded due to shrinking revenue. The story isn't that Microsoft stock is at 10 year lows, like many, many other stocks. The story is that this analysts is saying that Microsoft's revenue growth is now in questions. As yourself this question, after the bear market plays itself out and starts to recover, which companies will recover faster? Companies with strong revenue growth and good balance sheets that probably shouldn't have been trading that low in the first place or companies with deteriorating revenue streams due to pressures (like contracting PC sales, or poor sales of ones new operating system) that aren't necessarily related to the recession?

ultimolu3312d ago

But when Sony stocks were down, 360 fans were having a fiesta!
Woo-hoo! Party time!

The recession is affecting every single company. There's no reason why a console war should have been dragged into this in the first place!

sonyfanonly3312d ago

everything is down - the economy is crashing but mark my words the one company to pull out of this whole thing will be sony because M$ will abanden their gaming market before it costs them alot of money and nintendo has already abandend theirs - to be honest i dont know how the wii is still selling without any games i would pick a 360 over a wii but im happy with my ps3 - and another thing sony will stay with the ps3 for as long as it takes

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