Music Labels Charge Too Much For Microsoft
Bret540 writes "Yahoo is reporting that Microsoft has ended license talks with four major music labels. From the article: 'The paper [the Wall Street Journal] reported negotiations broke down Friday over what Microsoft considered high royalty rates.' How much more can the music labels demand when even Microsoft won't go to market? With other recent developments, one must wonder how long the music industry can keep pushing."
You give people an inch they try and take a mile.
People like that shouldn't complain that others just want to give them a few more inches from behind.
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That's kind of a dumb model - you want it the other way around. You want the thing they buy once to be a loss leader, but the thing they keep paying for to make you money...
Think Different.
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It costs a truckload of money to break into the gaming industry the way MS did. Many were saying that they could never compete, but they got a HUGE amount of mindshare in quite a short period of time (even beating out a company that had been doing this for 15 years), and it was a pretty brilliant move businesswise.
They're not profitable YET, but they will be. There's more money going into the videogame market every day, and MS has (at least this generation) shown that they can grab a significant chunk of that. Give it a while, and I fully expect MS to be profitable not only on the games, but on Live and the hardware itself as well.
right now, only nintendo doesn't sell its consoles for a loss. Its why even though they aren't the biggest, they are the most profitable.