Microsoft News Tracker

Confounding the rumors that Microsoft would cut the Xbox 360 price after Sony’s PS3 price cut earlier this week, Microsoft’s big E3 announcements yesterday were for a Halo 3 paint job and some miscellaneous games and movies. One can understand the desire not to appear to be in reaction mode, but these barely kept the fans awake.

Perhaps, despite all the evidence to the contrary, Microsoft’s management has some “double secret” plan, but what’s visible is that the belated billion dollar band-aid has tainted Microsoft’s reputation in the game console business (or worse); the success of the Nintendo Wii has blind-sided them; and reciting the mantra that the Xbox 360 will be profitable in fiscal 2008 with the help of some creative accounting doesn’t dispel the fact that it has been a very bad business venture for Microsoft. The question is whether, ignoring all the sunk costs, there is any expectation of it becoming a worthwhile investment in the future compared to Microsoft’s other opportunities.