The news flow is abuzz this week with stats about Microsoft Corporation (NASDAQ: MSFT) and its Xbox 360 console. According to reports, the company has sold 30 million units of the gaming hardware around the world. Nintendo Co., Ltd. (OTC: NTDOY) is still in first place with 50 million Wii consoles sold. And Sony Corporation (NYSE: SNE)? Well, the PlayStation 3 is decidedly third with roughly 22 million systems moved through retail channels. And don't give me that Xbox-360-had-a-year-over-Sony excuse. Doesn't matter. Microsoft has so far played it well.

But I'd like to see Microsoft do even better when it comes to the Xbox 360. I think, out of all the investments Microsoft makes that are outside of the core operating system asset, the Xbox 360 is the one with the most potential promise.

Continue reading Microsoft does well with Xbox 360, but needs to try harder

Microsoft does well with Xbox 360, but needs to try harder originally appeared on BloggingStocks on Fri, 29 May 2009 18:40:00 EST. Please see our terms for use of feeds.

If imitation is the sincerest form of flattery, Microsoft (NASDAQ: MSFT) must love Apple's (NASDAQ: AAPL) chain of retail stores. But, will it help Redmond to have stores of its own?

Setting up a Microsoft store is probably going to be difficult. Apple has a fairly limited number of products. Will Microsoft have its Xbox in the stores? How about its Zune of PCs running the new Windows 7 OS? Will it display business software for servers?

According to Reuters "Microsoft Corp announced plans Thursday to open its own chain of branded stores as it looks to catch up with rival Apple Inc's successful move into retailing."

Continue reading Microsoft (MSFT): A store, just like Apple's (AAPL)

Microsoft (MSFT): A store, just like Apple's (AAPL) originally appeared on BloggingStocks on Fri, 13 Feb 2009 03:57:00 EST. Please see our terms for use of feeds.

Microsoft (NASDAQ: MSFT) is about to launch the latest version of its Zune multimedia player. It should avoid the humiliation. The Zune has sold about two million units since it was launched. The rival Apple (NASDAQ: AAPL) iPod has sold over 150 million units.

According to MarketWatch, "Microsoft is hoping consumers will be tempted to buy a Zune rather than an iPod due to the device's ability to more actively distribute music among friends and contacts established through the company's online marketplace."

A question to management in Redmond: Why lie to yourselves?

This is actually a perfect time to kill the Zune player. It is part of Microsoft's entertainment and device division. That part of the company makes and market the Xbox 360. With the new price cuts on the game console, Microsoft could start to lose money in that operation again. In the last fiscal year, the company made $426 million in "devices" on $8.1 million in revenue. But the two years before that, the hardware business at Microsoft lost over $2.5 billion.

Cutting prices on the Xbox will probably set back Microsoft's effort to be profitable by selling games and portable music players. Why not kill the Zune and tell shareholders the focus will be Xbox? No reason to have both products in the red.

Douglas A. McIntyre is an editor at 24/7 Wall St.

Relaunching the Microsoft Zune into oblivion originally appeared on BloggingStocks on Tue, 09 Sep 2008 09:15:00 EST. Please see our terms for use of feeds.

This post is one in a series on prominent company nicknames. See all 25, and share your thoughts and memories about Mr. Softee below in the comments.

You would be hard-pressed to find a professional stock trader today who didn't know that "Mister Softee" is Microsoft (NYSE: MSFT) . The nickname is so widely-used among investors that it seems to barely need explanation. But there is actually a quite simple reason for the derivation of the moniker. Here is how I imagine it taking hold:

Once upon a time in a land known as Manhattan, some Wall Street traders were enjoying some after-work beers. After about the fifth brew, these professionals began to gain insights, as they so often do today, into weighty topics.

They pondered the amorous tastes of Ginger and Mary Ann from Gilligan's Island. They debated whether "Freebird" or "Stairway to Heaven" was the greatest rock song of all time. Then, one of the traders had the burst of insight that the ticker symbol for Microsoft ("MSFT") has some of the same letters as beloved self-serve ice cream Mister Softee. And so, one of the most ubiquitous bits of Wall Street slang was born.

Continue reading Company nicknames: Microsoft nickname is an insult to Mister Softee

Company nicknames: Microsoft nickname is an insult to Mister Softee originally appeared on BloggingStocks on Mon, 11 Aug 2008 10:10:00 EST. Please see our terms for use of feeds.

GameStop throws in the towel on Microsoft's Zune originally appeared on BloggingStocks on Tue, 27 May 2008 11:55:00 EST. Please see our terms for use of feeds.

Microsoft (NASDAQ: MSFT) can't sell any Zunes, so it has come up with a plan so that it will continue to do badly in the business. According to The Wall Street Journal, Redmond "is introducing a new technology that will let users of its Zune portable devices legally share portions of their song libraries with other Zune users." To take full advantage of the new product users will have to buy a $14.99 a month service called Microsoft's Zune Pass.

None of that is going to help get share from the Apple (NASDAQ: AAPL) iPod. Not only is it the largest music download service in the US, the iPod has almost 80% of the market. Zune owners can't share music with other Zune owners because there are so few of them. Perhaps Microsoft could start a "Zune-user location service" and charge money to help people find the two or three other Zune customers in their town.

There have been hopes that the Zune would do for Microsoft in the portable music device business what the Xbox did for it in gaming. But, Apple's footprint is too large and it is adding services, like video downloads and rentals, too quickly.

Microsoft should stick to trying to buy Yahoo! (NASDAQ: YHOO).

Douglas A. McIntyre is an editor at 247wallst.com and author of the Ten Stocks Under $10 letter.

Microsoft (MSFT) tries to boost the Zune originally appeared on BloggingStocks on Tue, 06 May 2008 11:47:00 EST. Please see our terms for use of feeds.

It may be hard to fathom. The Zune portable multimedia player, introduced over a year ago, is selling out. Microsoft (NASDAQ: MSFT) could not give the first version away. Its attempt to take market share from the first place Apple (NASDAQ: AAPL) iPod was a very public failure.

But, the world's largest software company came out with a new and improved version for this holiday, and it appears to be a hit. According to the Associated Press "the 80-gigabyte Zune media player Microsoft launched Tuesday has sold out across the Web, to the dismay of online shoppers and delight of the world's largest software maker." There is talk of 10-day delays for Zunes ordered on Amazon.com (NASDAQ: AMZN).

The lack of availability of the device may seem like good news for Redmond, but it isn't. It may get the company some PR about the popularity of the new device, but the software company can't gain market share against the iPod if it does not have inventory to sell.

Microsoft may lack skills in terms of manufacturing hardware devices and managing its supply chain. Apple has been at the hardware business for well over two decades.

On reflection, there is nothing to celebrate about a Zune shortage, except at Apple.

Douglas A. McIntyre is an editor at 247wallst.com.

Microsoft (MSFT) Zune sold out? originally appeared on BloggingStocks on Sat, 17 Nov 2007 06:39:00 EST. Please see our terms for use of feeds.

Microsoft looking to acquire mobile company Musiwave originally appeared on BloggingStocks on Thu, 15 Nov 2007 17:39:00 EST. Please see our terms for use of feeds.

Continue reading Microsoft's new Zune digital music players go on sale today

Microsoft's new Zune digital music players go on sale today originally appeared on BloggingStocks on Tue, 13 Nov 2007 15:01:00 EST. Please see our terms for use of feeds.

Microsoft (MSFT) to launch new Zune -- is anyone listening? originally appeared on BloggingStocks on Wed, 03 Oct 2007 10:25:00 EST. Please see our terms for use of feeds.

Continue reading SpiralFrog's free music: Should Apple (AAPL) worry?

SpiralFrog's free music: Should Apple (AAPL) worry? originally appeared on BloggingStocks on Tue, 18 Sep 2007 08:00:00 EST. Please see our terms for use of feeds.

This post is part of our Money Face-Offs feature. Let us know who you think comes out ahead in this head-to-head match-up, and check out our other Money Face-Off posts.

The technology stories of the 1980s have a lot to do with the dawn of the PC era. IBM was about to license its personal computer technology to the open market (leading to the rising popularity of Microsoft) and Apple's computers were a hit-or-miss proposition with consumers as el-cheapo PCs made their entrance and became the dominant force in many homes and offices. Remember 1,200-bps modems and bulletin boards, folks?

Microsoft's arguably illegal tactics made it flourish in the 1990s under CEO and company cofounder William H. Gates, and the debate continues to this day whether the Windows 3.0 and Windows 95 operating systems were in part copies of Apple's MacIntosh operating system. Suggested viewing: Pirates of Silicon Valley.

Apple seemed dead in the water in the mid '90s, and Microsoft was growing by leaps and bounds. Bill Gates became the richest person in the world on paper (which would last more than a decade), and Steve Jobs came back in 1997 to try and resurrect a floundering Apple that had not done much in terms of innovation or growth under then-CEO Gil Amelio. Gates seemed on top of the world; Jobs, not so much.

Continue reading Money Face-Off: Steve Jobs vs. Bill Gates

Money Face-Off: Steve Jobs vs. Bill Gates originally appeared on BloggingStocks on Sat, 15 Sep 2007 11:10:00 EST. Please see our terms for use of feeds.

Is Apple, Inc. (AAPL) the new monopolist? originally appeared on BloggingStocks on Mon, 10 Sep 2007 16:45:00 EST. Please see our terms for use of feeds.

• Updates to the Zune family itself. These new updates will include new sizes, styles and price points
• Features that will help the Zune "move towards parity with iPod"
• New geographic markets for the Zune

Continue reading New Zune could be here for holidays

New Zune could be here for holidays originally appeared on BloggingStocks on Tue, 24 Jul 2007 16:51:00 EST. Please see our terms for use of feeds.

ZuneMan: The conundrum continues originally appeared on BloggingStocks on Fri, 22 Jun 2007 18:31:00 EST. Please see our terms for use of feeds.

According to Engadget, Microsoft's (NASDAQ: MSFT) Zune is being sold for about 20% off its normal retail price. The figure is at least that low at Staples, and Circuit City also has the product for sale at a deep discount.

Whether the discount is by design or the retailers are simply trying to clear out inventory is still unknown.

The Zune has now sold over a million copies since it was introduced, but that is a rain drop in the ocean compared to sales of Apple's (NASDAQ: AAPL) iPod at the 100 million plus. Estimates for iPod sales in the current quarter run at about 10 million, depending on which Wall Street analyst is polled.

Micorosoft now has a problem it can only solve with price. Apple's lead in the MP3 player market is still much too wide for the world's largest software company to gain market share on an equal-price footing.

Microsoft was willing to lose large sums on the Xbox in an effort to gain on Sony's (NYSE: SNE) PlayStation. The company is losing money on its internet properties now. So, there is evidence that making a large investment is not outside the firm's culture, if it appears there may be some reward down the road.

The odds of Microsoft's Zune doing well are still long, but they would shorten a bit if the product sells for $175.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Zune goes on sale originally appeared on BloggingStocks on Mon, 11 Jun 2007 11:13:00 EST. Please see our terms for use of feeds.

Zune beating the iPod? Microsoft's music player sells one million units originally appeared on BloggingStocks on Mon, 28 May 2007 15:13:00 EST. Please see our terms for use of feeds.

Microsoft's (NASDAQ: MSFT) Halo 2 video game racked up sales of $125 million the day it hit the market. The world's largest software company believes that sales of the new Halo 3 game will be even larger. Aside from a version of the game for the Xbox 360, there will also be a Halo 3 for the Microsoft Zune.

According to one video game review publication, the newest version of the game is meant to fend off competition for the Sony (NYSE: SNE) PS3 and Nintendo Wii.

Video game industry experts say that Halo 3 has four million pre-orders from retailers, compared with 1.5 million for the launch of Halo 2. If that is true, it may add to the troubles for the already shaky start of the new PS3. Most surveys show the new Sony platform's sales lagging the unexpectedly popular Wii and the Xbox.

Wall Street and the gaming industry did not expect that Xbox, which was launched in late 2001, had much of a chance of catching Sony. The Japanese company simply had too large a lead. But, it is now Sony that is struggling to move back into first place. PS3 problems have even been blamed for the departure from Sony of PlayStation creator Ken Kutaragi.

The Microsoft way is to enter a business, out-develop and out-spend competition, and then finish them off. It seems to be working against Sony.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Microsoft's Halo 3: A boost for Xbox? originally appeared on BloggingStocks on Sun, 13 May 2007 14:40:00 EST. Please see our terms for use of feeds.

Barron's has reported that Apple (NASDAQ: AAPL) is working on a WiFi-enabled iPod to be released later this year. The Microsoft (NASDAQ: MSFT) Zune already has wireless capacity as does the new MP3 player from Yahoo! (NASDAQ: YHOO) and SanDisk (NASDAQ: SNDK).

Apple has sold 100 million iPods without a wireless feature, but adding WiFi interactivity would seem to be a way to cement its huge lead by offering a feature that the competition is pitching as an advantage.

The features of the new Yahoo! player expand a great deal on what an iPod can do. That may be another reason for Apple to add WiFi. Word is that the Yahoo!/Sandisk model will allow for instant message use, internet radio, and the ability to browse photos at Flickr.

There have also been reports that Microsoft may offer the Zune player for next to nothing, and try to make its money on the sale of songs for the device. This is not unlike the cell service provider model where phones cost very little as long as consumers sign up for a minimum service plan. It is a gamble, but Microsoft can afford to take it in an attempt to get market share from Apple.

A WiFi iPod may not help sales, but it could protect them.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Will Apple build a WiFi iPod? originally appeared on BloggingStocks on Mon, 16 Apr 2007 12:55:00 EST. Please see our terms for use of feeds.

Yahoo! Inc. (NASDAQ: YHOO) and SanDisk Corp. (NASDAQ:SNDK) are launching a new MP3 player with WiFi capacity, joining a host of rivals to Apple Inc.'s (NASDAQ: AAPL) iPod, including the Microsoft Corp.'s (NASDAQ: MSFT) Zune.

The iPod currently has 70% of the portable music player market, and, that number appears to be holding. If the iPhone sells well, Apple will have another horse in the music download space. Cellphones that can download music are offered by the large handset manufacturers including Nokia Corp. (NYSE: NOK) and Motorola Inc. (NYSE: MOT), but there is little evidence that they have done any damage to the iPod's growth rate.

As much as it must pain Apple's competitors, no one has been able to throw anything in front of the company to slow the momentum of the iPod and its download service iTunes. The European Union recently announced that it would look into pricing issues involving iTunes and the record companies. That may eventually hurt Apple just as antitrust actions by the EU have slowed Microsoft's progress on the Continent.

Apple's only enemy appears to be its own success.

Douglas A. McIntyre is a partner at 24/7 Wall St.

One more iPod competitor originally appeared on BloggingStocks on Mon, 09 Apr 2007 08:15:00 EST. Please see our terms for use of feeds.