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internetworkers - Re: internetworkers digest: November 17, 2001

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Subject: Internetworkers: http://www.ibiblio.org/internetworkers/

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  • From: "Andrew C. Oliver" <acoliver AT nc.rr.com>
  • To: InterNetWorkers <internetworkers AT franklin.oit.unc.edu>
  • Subject: Re: internetworkers digest: November 17, 2001
  • Date: 18 Nov 2001 07:28:24 -0500


>
> Subject: RE: For Musicians, Microsoft's Xbox Is No Jackpot
> From: Thomas Beckett <thomas AT tbeckett.com>
> Date: Sat, 17 Nov 2001 10:17:36 -0500
> X-Message-Number: 2
>
> Joe Reid wrote:
> > Buy an X-Box, Microsoft is selling them at a loss.
>
> That's called "penetration pricing". They figure that (almost) every
> Xbox unit they sell is one sale that Sony or Nintendo don't get. And
> every Xbox sold is a customer captured for the games/software that work
> only on Xbox, and for which MS gets a licensing fee for every unit
> sold. And every Xbox sold contributes to the network externalities
> among consumers that increase the value of the next Xbox waiting to be
> sold. MS is built on network externalities ("the value of a network
> increases geometrically with the number of members in the network" more
> or less).
>
> So buying an Xbox because you're against Microsoft and you want to
> subtract a few pennies from Microsoft's bottom line is counterproductive
> in the long run, because MS stands to gain much more if you buy it.
>
> TaB
>

Funny... I like to call it "illegal dumping".. Penetration pricing
means lower than you would, not lower than you can (at a loss would be
can) to put the competition out of the market.

-Andy
--
www.superlinksoftware.com
www.sourceforge.net/projects/poi - port of Excel format to java
http://developer.java.sun.com/developer/bugParade/bugs/4487555.html
- fix java generics!


The avalanche has already started. It is too late for the pebbles to
vote.
-Ambassador Kosh





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