Microsoft Corp.
MSFT.O distributed its new Windows XP operating system to computer makers
three weeks ago, but after last week's devastating air attacks, XP may not
provide the boost the technology sector hoped it would, analysts said. Because
older computers may not have the processing and memory required to run XP,
analysts had expected the launch to spur PC sales.
However, the events of Sept. 11 could force Microsoft to slash its marketing
plans for Windows XP, analysts said on Tuesday, and sagging consumer confidence
may erase any gains that the launch of the new operating system would have
provided to struggling technology firms. "We would expect the launch of Windows
XP to be more muted," Credit Suisse First Boston said in a research note
analyzing the effects of the attacks on the World Trade Center and the Pentagon.
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