MSFT CFO Tells Wall Street That Win98 Delay Would Impact Entire PC Industry

(May 5, 1998)  Microsoft Corporation's Chief Financial Officer, Greg Maffei, wrote to Wall Street analysts on Monday to describe "the broader economic consequences of an action that might block or delay the launch of Windows 98."  Maffei asserted that it would harm PC makers, retailers, software development companies, peripheral device makers, and the whole U.S. economy.

Maffei wrote that:

"It is always difficult to predict the economic impact of events, but should the DOJ or state Attorneys General seek to interfere with the launch of Windows 98, there are likely to be broad, negative consequences not just for Microsoft but for the entire PC industry. The impact would be felt by PC manufacturers, companies that develop software products (often called ISVs, or independent software vendors), companies that manufacture hardware peripheral devices supported by Windows 98 (such as digital cameras or digital video devices), resellers and retailers who sell computer and software products, value-added providers who provide service and support, and thousands of others whose success is tied to Windows."

This letter follows on the heels of a letter from twenty-six computer industry leaders to the Department of Justice antitrust chief Joel Klein requesting that it take not legal action to attempt to delay the release of Windows 98.

On Tuesday, May 6, Microsoft CEO Bill Gates is scheduled to speak in New York City to a "Rally for Continued PC Industry Innovation and Economic Growth".

These actions are all part of a concerted effort to stave off lawsuits brought by the U.S. Department of Justice, or any of the states.