MSFT is spending more on software research than any other company.
Longer term PCs have a very basic problem. The UI sucks. How old is the keyboard. Remember when the mouse was new? Smalltalk 80?
Sure the internet has made things connected. Wireless provides mobility. Better chips allow better apps. Now we can do video on a duel core machine.
We need better UI. See the UI in minority report? Ever watch the star trek UI?
There used to be a saying at MSFT, "building software for tomorrows hardware"
Longhorn is the first stab at a new platform for voice gester recognition. Untill this basic problem is solved a new era will not begin.
But imagine, you get it figured out, in 23 languages and sell it for $99. Now that an upgrade cycle.
Xbox? Just a place holder in a booming market. Very cool, might eventually make some money. MSFT thinks big.
If you want to buy, buy for longhorn. Exit on the top of the channel as Nitro suggests 32-34.
Me? i'm long from 94'. Last 5% of my holdings. they are being dumped in that range.
Personally, I would and will still buy google, FOR AN INVESTMENT. They are the first new company around that is worthy and makes some cool stuff. Adobe is a niche, Quicken, symantic are also. Good niches but still. Apple, thank goodness they have hardware to sell. Software is a great business. Large developement costs, easy manufacturing.
-cheers
