31–40 of 70 posts
As one of the commenters on the page did: http://i.imgur.com/jHLOX.png
It shows a much more likely scenario. Although maybe a bit over the top with the naming of the profit section as Google Kill Zone. Why can't big companies play nice. :)
To make the claim that this is a bad thing, one must argue that Microsoft's stock would be worth more today if Microsoft had not been aggressive about search. How a company shows gains and losses is also very subjective. The numbers could turn around and show strong profits around the time that bing reaches 45% market share (which will be soon).
And how much of that spending goes into supporting online efforts of other divisions. I imagine the "online" division handles everything most everything that goes online even if it is supporting offline products.
This is a challenging problem that doesn't fit nicely into comments or short blog posts, but I'll try. Search is a tremendously expensive game to try and win. It's economics are such that the more search share you have, the more money you earn per search. This is a critical point, so I'll spell it out a little further. All search companies have more advertiser dollars than they have searches to spend them on, Google,…
February 2010..
The Online Services Division for 2010 had an operating loss of $2.355B.
This is such small thinking. As one of the commenters on the page did: http://i.imgur.com/jHLOX.png It shows a much more likely scenario. Although maybe a bit over the top with the naming of the profit section as Google Kill Zone. Why can't big companies play nice. :)
This is a challenging problem that doesn't fit nicely into comments or short blog posts, but I'll try. Search is a tremendously expensive game to try and win. It's economics are such that the more search share you have, the more money you earn per search. This is a critical point, so I'll spell it out a little further. All search companies have more advertiser dollars than they have searches to spend them on, Google,…
Disclaimer: I do not speak for Microsoft, I am simply an employee - these opinions are mine and mine alone. As someone working in the online services division I have to say that this analysis is extremely simplistic. Would they be saying the same thing about Facebook? It was in the red for many years before it became profitable. That was the plan.
This is such small thinking. As one of the commenters on the page did: http://i.imgur.com/jHLOX.png It shows a much more likely scenario. Although maybe a bit over the top with the naming of the profit section as Google Kill Zone. Why can't big companies play nice. :)
Disclaimer: I do not speak for Microsoft, I am simply an employee - these opinions are mine and mine alone. As someone working in the online services division I have to say that this analysis is extremely simplistic. Would they be saying the same thing about Facebook? It was in the red for many years before it became profitable. That was the plan.
