4 ms·
My point was that Microsoft only need to up the investment speed enough that everyone are in the red. The non-monopolists will have to give up in the end. Then
by berntb 17y ago
My point was that Microsoft only need to up the investment speed enough that everyone are in the red.
The non-monopolists will have to give up in the end. Then the monopolist can stay and earn lots of money for generation n, n+1, n+2, ...
(I think this is a classic example in economy, but for bakeries (?). A big chain goes into a geographic area and undercuts the prices of the small bakeries. After a while they close. Then the prices are raised to higher than ever before -- to pay for undercutting prices in the next area.)
- ssharp 17y agoThere are two things working against that idea: 1) monopolies are illegal in most countries that you'd be targeting and 2) achieving monopolies in most markets is difficult. In your bakers analogy, the barrier to entry is low enough that other bakers could set up shop and create competition. The video game console market is large enough that there will always be some company that could pounce on an opportunity. In fact, it's happened twice in recent history. Sony with the PS1 and Microsoft with the XBox.
- berntb 17y agoAre you trolling me? 1) Uhm, hello... Microsoft pays their fines and laughs all the way to the bank -- or use regulatory capture. (How many years has the EU been trying to get usable documentation for network standards?!) 2) Uhm, hello... Microsoft and different application areas? History contradicts you here, too. (Then, I don't know enough about Sony/PS1, but Microsoft entering areas like this is a bit outside of their normal behavior, but open source will change their home market.)