Microsoft's Xbox division doesn't make money, may be sold, claims analyst

http://www.gameplanet.co.nz/news/1020701.20130122.Microsofts-Xbox-division-doesnt-make-money-may-be-sold-claims-analyst/?utm_source=lsv&utm_medium=email&utm_content=Subscriber%2396293&utm_campaign=GPNZ%20Newsletter%202013-01-22

[quote]Microsoft's Xbox division doesn't make money, may be sold, claims analyst Diminishing Windows profits to necessitate cull.
by Matt Maguire on 22 January 2013, 11:56 am

Microsoft will soon sell its entertainment division – the home of Xbox – according to a US business analyst.

The prediction was one of half a dozen that Forbes contributor Adam Hartung made regarding the company, whose future he claimed was already in jeopardy.

“No matter how much anyone likes the non-Windows Microsoft products, without the historical Windows/Office sales and profits, it’s hard to see how long Microsoft can remain sustainable,” he wrote.

“Microsoft makes nothing from its Xbox/Kinect entertainment division, whilelosing vast sums in its on-line division (negative $350M-$750M/quarter).

“The entertainment division could be spun off, sold to someone like Sony or possibly Barnes & Noble, or dramatically reduced in size.

“Unable to make a profit it will increasingly be seen as a distraction to the battle for saving Windows, and Microsoft leadership has long shown it doesn’t know how to profitably grow this business unit.”

Slow sales of Microsoft’s Surface tablets and Windows 8 were also harbingers of doom, claimed Hartung.

“Expect substantial layoffs over the next 3 years,” he wrote.

“They could even reach 50-60%, or more, of employees.

“The future is looking very difficult for Microsoft–and for your investment if you own Microsoft’s stock.”

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Am i allowed to lol? lol.



One of the former CEO's is saying some very unflattering things too, mainly about Steve Ballmer...

Well perhaps if they would stop wasting hundreds of millions of dollars on advertising firms they eventually disassemble when they fail and in niche studios, they could be profitable. Do you honestly think there would be failure like this if Halo was not their only first party mega-seller?

[quote user="WILK0"]

Am i allowed to lol? lol.

[/quote]Yes you are, because I found it hilarious.

[quote user="Murderstyle75"]

Well perhaps if they would stop wasting hundreds of millions of dollars on advertising firms they eventually disassemble when they fail and in niche studios, they could be profitable. Do you honestly think there would be failure like this if Halo was not their only first party mega-seller?

[/quote]You actually believe that article?

I think he's just saying they'd be further away from this result if they'd avoided certain things or approaches, though, hey, he may think it's going to happen.

.

Out of curiosity, what are you doing up at this time? :P

I am at work, I always work night shift, it's how I get to play my Xbox at work sometimes, although it's been almost a year since I last did.

It's definitely possible. Every business article I have read as of lately has been negitive. They do waste a whole lot of money.

Lol. I read a article like this that stated Microsoft will sell the Xbox brand to SONY. LOL.

Well here's MS's Q1 profits.

http://www.microsoft.com/investor/EarningsAndFinancials/Earnings/PressReleaseAndWebcast/FY13/Q1/default.aspx

Sonybox 720 ... ?

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