Investors will be looking for signs from Microsoft Corp. of a strong holiday quarter for Xbox 360 video game consoles and new computers loaded with Windows Vista when the company reports results this week.
The world's largest software maker posts quarterly results on Thursday and investors expect the company to get a boost from the continued adoption of new versions of Windows and Office as well as solid performance at its video game unit thanks to the release of the blockbuster game title, "Halo 3." More after the jump.
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Don't they know any better?
This should be a very strong quarter for Microsoft, the E&D section will probably make a profit for the next 2 quarters. The problem now will be for them to keep on working to bring down the cost of the Xbox 360 so that they can warrant to cut the price further and at least break even on the hardware which is where a lot of the red ink is going. The next 12 months will be a crucial year for the 360 and by the end of next year we will pretty much have a good idea of where its headed, if Microsoft plays its cards right they will be able to set themselves up as a long term and profitable player in the industry.