Man o Man.. STUPID MOVE (if it turns out to be true).. esp. in this post-Enron era. I dont get it.. hes got money, a secure job.. why the heck would he even put himself in a situation like this?

Somebody...

*puts on sunglasses*

...Is about to do a Martha.

*walks off abruptly*

Two months before an announcement is rarely considered insider trading. The announcement is generally seen by investors as a good move. There's nothing to see here, move along.

I'm wondering how many of the people casting a negative light on here even know what insider trading is. Obviously the first poster has no idea because Enron was a case of accounting fraud, not insider trading. Typically when a decision like this is made there is a blackout period where employees in the know aren't allowed to sell stock. I can't imagine that a huge company like Microsoft wouldn't do this as well. Lets also examine the fact that he only sold a portion of the stock he owns and not all of it. You would have to be a pretty big moron to not sell all of your stock with insider information if you thought it was going to greatly change the price of the stock.

P.S. GodisaMyth, go troll somewhere else, you aren't nearly as clever as you think you are.

Thank you Joystiq, for reporting this complete non-story!

Maybe he just REALLY wanted $6.2 million dollars in cash to dive into, right?

That's an ironic username for a trolling tech evangelist.

I said it before and I'll say it again: you are trash.

the 360 is such a small part of what microsoft does and the share price reflects this. at the worst, this is one more minor slag to the 360 durability. But really, the damage of 1.15 billion in fixing broken 360s is the huge story. gaming is still a sideshow at ms

the Brayn,

Good post. I will expand a bit as well. Most higher paid corporate swinging dicks are paid over half in company stock. The CEO of my company is given about $9 million a year in stock and "only" $500,000 in cash, depending on how well we do. Often, as is the case with our big dick, there is a rule in their contract where they have to wait a set period of time to sell said stock.

To have a healthy investment portfolio, you must spread your funds to other places besides Microsoft or any one company. All investors do this. The only, and I mean only, coincidence here is that it came within a week of one of the many negative announcements the games division makes in a year.

But, is that really a big thing. Remember, this is microsoft stock we are talking about. The Xbox 360 represents a very small portion of that stock's value. The 360 is a small fish in a big pond. I mean, he has to unload stock sometime anyways. Typically, these people will avoid times after bad announcements. But this 360 announcement of the warranty extension is very small compared to the bigger picture that is MS Corp.

If they had announced Vista sales falling 40% short of target, and then he unloaded a meager 6 mil portion of his MS stock, you would have a mini-controversy. As it stands, this is just a story for very ignorant fanboys to try to make a big deal out of and show everyone how young and/or uneducated they really are.

Go to CNN/Money or Wall Street Journal or some website that actually knows a thing or two about money and see how big of a "story" this is. This is nothing more than retarded flamebait bs.

"In the two months before the announcement, two Microsoft employees sold more stock than Bach: General counsel Brad Smith, who said he used the money he made to purchase more Microsoft stock"

Huh?

Man, if he's figured out a way to sell stock, then buy back the same stock and turn a profit, he's gonna make us all millionaires overnight!

Something's a little fishy there.

As for this story not mattering because the repair announcement "barely moved" MS stock... that's not the point. Daily market fluctuations are ignored by any serious investor. Investors invest for the long-term - that includes Robbie Bach. He knows this is going to cost MS at least $1.05 billion in repairs alone, and he obviously suspects it's going to cost them some sales and goodwill going forward as well. He may have had other reasons for selling too, including Sony's coming price cut and whatever he expected from the Wii.

The bottom line is you only sell a stock when you feel it's reached a high point, where it's only headed down from there - at least for the forseeable future. (Most investors break down their investments down in chunks of time, so the stock he kept he's considering himself vested in for years down the line.) I think it should be obvious that the repairs were part of that, and that he feels that's going to drag on the 360 and MS for however long he had planned on this chunk of investments. It's not about the one day that MS made the announcement.

cough.. FTC inquiry....cough... cough

Very sad, how Pathetic is this guy.

maybe he needed the money. 6.2 million might be alot to most of us but for him it's a summer home

GodisaMyth, I can't read your post. Can you darken the font a bit?

this is silly. how little the xbox business affects microsoft as a whole isn't apparant to any of you. this announcement of the extended warranty wouldn't, and didn't bring the stock down.

if anything, microsoft's stock will rise due to brisk vista sales and the holiday season including halo 3 (duh!!).

He's hot.

Maybe he needed the cash to buy stuff. You can do that you know; there's no law against it.

Whatever. I'm trash. What is it like to be able to make up one's mind about someone by some anonymous posts on videogame blogs? You must be very intelligent. Genius even.

For 6+ months there has been an unprecedented level of Sony bashing. Now that Sony is starting to show that it means business, I think some of you are realizing that Microsoft is NOT the greatest, most perfect company in the world.

Excuse me if I dish alittle of the trash back after months and months of anti-Sony this anti-Sony that.

Unlike the typical Sony basher, I do not want Microsoft to fail. Competition is good for all of us. I am actually glad that Sony took so much heat lately. This has assured many, many good things from the Sony camp. The only console I could care less about is the Wii.

I was simply pointing out that ALL big corporations are in it for the MONEY. All big corporations lie.

Until very recently Microsoft could do no wrong. Stuff like this and the RROD just bring Microsoft fanboys back to planet Earth.

Welcome back!

Wow...what would it take for you guys to think anyone at Microsoft is capable of wrongdoing? Would have have to murder his mother while selling all that stock?

It's not hard to add up the situation:

1. Bach is the head of the entertainment and devices group, which includes the 360.
2. He sold millions in stock in the days leading up to a major announcement about a device that his group is responsible for.
3. The warranty extension included information about how warranty coverage to this point has cost MS more than a BILLION dollars. That is not an insignificant number.

Whether or not the announcement caused the stock price to change is immaterial. When dealing with insider trading, even the appearance of impropriety is enough to get you in trouble. This definitely stinks of impropriety.

GodisaMyth, if you can make up your mind about this guy or 360 games or wii games or any of the other stuff you constantly bash on this site by just looking at a few screenshots on your computer, I can make up my mind about you by the words you type. and I did make up my mind that you are trash.

How is this even GAMING news....

Yet another attempt by Joystiq to denigrate Microsoft. Its amusing how many articles they devote to bashing the Wii and Microsoft. Theres a difference between reporting the failure and the facts that support that conclusion when it comes to the ps3 AND reporting a bunch of bs regarding MS stock holders.

And yeah Godisamyth....you're pure trash. A sony troll whos so desperate for something to do (since you've watched all your BluRay movies a million times by now) that you go thru this website inserting yourself in every Wii and Microsoft thread.

The ignorance is just unbelievable. You guys are so clueless if you think MS extending the warranty is going to bring MS stock down over the long haul. The games division will be turning a profit for the first time. Vista sales are good. You just need to get it through your thick skulls that when people have over 10 million dollars in stock options in one company, they are often going to move those assets to other locations. It is called diversifying.

YOU WORK AT A HIGH POSITION FOR FRIGGIN MICROSOFT

DID YOU REALLY HAVE TO DO THIS

when the general public sees "3 year warranty!" they dont think "Bad! something must be wrong with the console!" they think "Good! Those other companies only offer one year! I'll take eight!"

I accidentally hit the comment button before finishing.

Hell, there is nothing I really can say. MS as a company is fine, yet you will continue to see some people buy big chunks of stock and some people sell big chunks of stock. That is just how it works. Only on a game blog will people be stupid enough to associate this to a warranty extension for one of their smaller products.

And GodisaMyth, seriously, take a look in the mirror. That is the person you are really lying to, cause we sure as hell ain't fooled and don't take you seriously in the least.

Right Jody,

I just look at a few screen shots on my computer...and I instantly know EVERYTHING about everything.

What kind of Jackasserry are you spewing? You can have whatever opinion of me that you want....I do not care.

It is interesting that the typical Sony bashers are gone. What happened?

Oh, I know...Sony brought the games, games, and more games.

I have seen enought of the Wii (physically) to form my opinion of it. Crap with a capital K.

As for the 360, there are some games I am interested in, but for the most part...that system does not appeal to me.

I mostly bash the 360 fanboys for their Microsoft could do no wrong mindset. Example the RROD. How many times did I read that it is NOT the system...these people must be doing something wrong.

Jody, I think you are the mediator friend that everyone has....by most of your posts you want everyone to get along. Sorry Rodney King....it does not work like that.

IBM crapset = RRoD

Cell processor = perfect reliability

Ms needs to learn a thing or two on making real hardware from Sony. Sony needs to learn how to become the biggest most profitable monopoly known as Microsoft.

Nintendo needs to figure out what to do next when Sony and MS steal away their casual gamer audience. Perhaps educational/medical therapy games?

The SEC is going to have a field day with this one. If he had knowledge of the cost impact for the warranty extension prior to selling his stock then he has some questions to answer and I don't think Gates is going to be able to protect him using "Executive Privilege."

That last bit curmeo will NEVER happen. sony could care less about causal gamers. Microsoft does. And they're trying to branch out with different types of games.

And from what I've seen of the ps3 its just an overpriced machine that just happens to play videogames. Sorry not interested.

As for the RRoD I happen to think that in the majority of cases it is the persons fault. I also think its being OVER inflated. Especially when you come online.

"As for the RRoD I happen to think that in the majority of cases it is the persons fault."

So, after Microsoft said that it WAS a defect...you still believe that shit. Pull your head out of your ass and open your fracking eyes. Gods, what will it take for you?

And for those that claim I troll MSfanboy and Wiifanboy just to trash talk. No, you are wrong. 99% of the time I only post on PS3fanboy or Joystiq.

And yes Jody...I think I am better than you, all of you. I perfect, omnipotent.

I'm smart enough, I'm strong enough, and Gods darn it....people like me.

If you really believe that I think I am better than anyone else here then you have a poor judge of a poster's mindset.

The PS3 and the 360 are not toys. Is your TV a toy? Is your stereo a Toy? Are your speakers toys?

My kids Power Ranger action figures are toys.
Matchbox cars are toys.

A videogame system is NOT a toy.