Kik, re MCZ along with the sector MCZ business continues to decline slowly. But, the RB4 estimates are very significant. In the CC the CEO stated that in 2010/11 RB3 provided $60,000,000 in incremental revenues for MCZ. He stated that they are looking for their revenue related to RB4 to be "meaningfully above" the $60 million....should be much bigger than RB3//
In RB3, MCZ made only the keyboards, and special bundles of all equipment. Now they are responsible for the guitar, drum set, microphone, controller, plus they get half the revenue due from software (as co-publisher). In RB3, MCZ got in towards the end of that cycle (although it was a huge cycle) and their were many competitors. Now its only Rockband and Guitar Hero. Right now the Channel is completely empty, in RB3 it was full of the wazoo.
Obviously there are risks...will the demand be high? Although for the above reasons, it doesnt have to be as high as RB3 to be a big success. And since MCZ is more involved on the Revenue end, they are more involved on the expense side...so more risky.
As for the taxes, I agreed with your statement when I first read the PR, however, they gave some convoluted statement about bringing the off balance sheet deferred tax assets onto the balance sheet which I did not understand. I'll have to listen to the cc again to answer it better.
best.
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