Strong Halo 3, PC Sales Lift Microsoft

Since the first Halo came out in the 2000's, the game along with Microsoft has lead the gaming world. The franchise has set records for sales of the games for XBox and XBox 360 with three different games, each with records. The games have revolutionized the way that video games are made and when Halo 3 came out in on September 25, 2007 Microsoft's profit increased for the quarter from $15.6 billion to $16.1 billion. After Halo 2 came out more than two years ago and set new records for sales the hype for Halo 3 already started and the demand for the game was very high. This increase in the stock, demand, profit, and revenue make Microsoft who is already a huge power in the market for computers, a legendary company who can control so many things. They are already the world's largest softeware maker and in a market where there is high demand for personal computers loaded with its Microsoft Windows operating system gives them the ability to control their own destiny. They can now raise prices and raise wages as the demand for their services arwe so high that they can get away with increasing prices. But that doesn't seem like it's in the cards as in the future it looks like Microsoft will keep their prices the same as analysts say that they will keep earning their fair share of billions of dollars. When a company like Mircosoft that can make millions off a video game when they already make billions off of computers, they can control the market in ways that many other companies can't. With control like that they can make moves to their prices and wages in anyway that they feel will benefit their company.

Raytheon Profit Falls 7% in Period

Expectations are a big part of Economics as they can affect supply and demand. When Raytheon, maker of missiles, radar, and other defense and communitcations systems, had their profit fall 7 percent in the last period they looked back at what Wall Street had estimated. As their third quarter profit slipped 7 percent as charges from the firm's sale of commercial aviation businesses offset a revenue gain that nearly beat Wall Street estimates. When the profit of a company goes down then and expectations are not met then the price of the goods decrease along with demand. This can offset a company in a big way when certain profits fall like they did for Ratheon and it caued them to lower costs and sell their merchandise for undisclosed amounts of money. Raytheon is fortunate that their previous profits did not have that big of a decrease. However, Raytheon is forecasting smaller 2008 profits and revenue than industry analysts had predicted, sending Raytheon sahres down 1.7 percent. This causes wages to be more flexible as the compant tries to get more workers to come and be oart of the comapny. Raytheon might want rto do this as some companies find it profitable to have more workers come in so Raytheon migth need to lower wage rates or make then more flexible. What it true is that Raytheon's profit is decreasing and the future doesn't seem bright so what they need to do is lower wages, lower prices, and hire more workers.

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This is an independent study course in economics. The primary purpose of this course is to develop analytical skills and apply economic theory to analyze current events.