We didn’t ten minutes ago, but we do now. Check out The Verge for more info.
In a move that many have repeatedly hoped for, but have been continuously let down about (until now), Microsoft has declared that upgrading to Windows 10 from Windows 7, Windows 8, or Windows 8.1 (and any equivalent Windows Phone OS versions) will be FREE for one year after release.
I imagine that it will continue to be free after the first year, or at least a remarkably reduced price, but the move should prompt users to upgrade as quickly as possible. That means good news for Microsoft, which will definitely be aggressively promoting the adoption rate for it’s new operating system.
Intertia, as described by Newton’s 1st Law is a physical property of matter, which boils down to “things in motion tend to stay in motion, and things at rest tend to stay at rest”. This is obvious to anyone who has had to slam on their brakes in order to bring their car to a rapid stop, or move any particularly large piece of furniture. The same properties are true of people’s preferences. Chances are, if you’ve always bought things from a certain company, you’ll keep buying things from that company. This remains true until they release a product so deficient that changing to another product is better for your utility than maintaining your utility. The increase in utility by changing must be higher than the Switching Costs for that product.
Continue reading Switching Costs
…would still smell as sweet, but probably be worth about 20% less. Just as name meant all the difference in the world for Romeo and Juliet, so too does brand name mean a lot for certain high-profile companies. Today, the Idiot Economist looks at the meaning of brand, how to value certain company’s brands, and instances where a change in brand image has significant impact on a company, for better or worse (Spoiler Alert: it’s usually for worse).
Last week, The Idiot Economist went through an interesting thought-experiment and calculated a rough estimate for the value of everything on Earth, and then everything in the Universe (hint: Hydrogen futures might be a good investment). One of the assumptions made was that the value of a publicly traded company was equal to the sum of the values of all its shares (called ‘market capitalization’). Today, The Idiot Economist explores the true meaning of company value, and looks at some factors NOT determined by snapshot stock prices.
Continue reading How to REALLY Value Companies
Even if you’ve only paid the slightest bit of attention to the video game industry over the past few weeks, chances are you’ve heard of the Xbox One and at least one of it’s many public criticisms. One of the main ones revolves around the threat it poses to the ‘used-games market’ (also called a secondary industry), like GameStop, etc., and all of the benefits players receive from the existence of such a market.
Continue reading The Xbox One, Licensing, and the Destruction of the Used-Games Industry