Microsoft Could Sell Xbox Division To ‘Someone Like Sony’ – Analyst
Microsoft could be tempted to sell off its Xbox division to ‘someone like Sony’, according to recent claims from a US analyst.
“The entertainment division will be spun off, sold to someone like Sony or possibly Barnes & Noble, or dramatically reduced in size,” claims Hartung.
“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 they have no idea how to profitably grow this business unit.”
Hartung went on to claim that Microsft would downsize dramatically over the next few years, putting all of its resources into its battle with Apple’s iOS.
“Microsoft makes more than 75 per cent of its profits from Windows and Office,” continued Hartung. “Less than 25 per cent comes from its vaunted servers and tools. And Microsoft makes nothing from its Xbox/Kinect entertainment division, while losing vast sums in its on-line division.”
These are dramatic claims and the first to question Microsoft’s position in the console market, especially with so much talk of next-gen machines, too. Hartung believes the iOS and Windows battle will ultimately decide whether Microsoft survives. But he doesn’t fancy its chances.
“Failure is already inevitable. At this stage, not even a new CEO can save Microsoft. Game over. Ballmer loses. And if you keep your money invested in Microsoft it will disappear along with the company.”