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Comment Re:So, basically ... (Score 3, Insightful) 204

I doubt Sony is going to see what Microsoft is doing as anything other than a precedent and road map for future endeavors. The only reason PSN is free is because they wanted to overcome the shocking price of the initial PS3 models and wanted to take a chunk out of Xbox Live's market share. Xbox Live is profitable, PSN is not. If PSN ever reaches comfortable profitability, you can bet they'll be doing exactly what Microsoft is. They're just as much about screwing the customer as any other company (anti-piracy rootkits anyone?).

Comment 'Customers' are the product for more than just ads (Score 1) 204

Xbox Live is in the unique situation of being able to sell ads to the end-user, sell the ability to access end-users (via Marketplace) to publishers/developers, and take a cut of those purchases between publisher and end-user.

The article discusses this as a problem, but as far as Microsoft is concerned, it's everything as it should be. Customers aren't pissed enough to leave because they still see value in the service they're paying for and the ads are pretty unobtrusive. Until end-users or publishers get annoyed enough at the status quo to make a significant enough dent in their profits, Microsoft is not going to care. As it stands, we'll pretty much have to wait for one of the big name publishers to get annoyed enough that their games aren't getting the exposure they want, because the current minority voice of end-users annoyed at ads just isn't loud enough, and I don't think it ever will be. Publishers and their triple-A titles on the other hand have a ton of sway.

Of course, it will be interesting to see if the increasing dependence on Microsoft continues. If so, it might get to the point where the publishers don't have much sway as far as negotiations are concerned. Given that the gaming industry (excepting a few smart companies and indie devs) are basically abandoning the PC market in favor of locked-in console gamers, we're near the point where the console manufacturers and their signing keys are going to be the barrier between publishers and their continued success (or eventual failure).

Comment Re:No thanks (Score 1) 66

Gold, really? eGold was a site that did paypal for gold, and failed miserably. Gold-to-cash is a constantly changing ratio, and can lead to gold holders to be quite poorer when the stock market is soaring... cash is better than gold most of the time.

eGold failed because they were engaged in fraud and straight up money laundering

Comment Re:Subsidies inflate pricing. (Score 1) 1797

The reason the federal student loan program exists is because it ISN'T profitable to make that loan. Most kids are going to default, and the banks will be left holding the bag.

you can default on student loans, but you can never be absolved of them.

The only risk in making a student loan is that the beneficiary dies before they can pay it back, which is generally speaking a sound bet.

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