“Microsoft makes nothing from its Xbox/Kinect entertainment division.”
Microsoft’s entertainment division will be sold to someone like Sony in attempts to keep the Windows division alive, since the Xbox doesn’t turn much of a profit anyway- or so says a US business analyst.
An analyst has come forth and said that since the 360 and its gaming division doesn’t turn a profit for Microsoft, the firm will be selling the division to “someone like Sony” in attempts to keep the Windows division in business.
“The entertainment division will be spun off, sold to someone like Sony or possibly Barnes & Noble, or dramatically reduced in size,” said Forbes contributor Adam 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.”
“Microsoft makes more than 75 per cent of its profits from Windows and Office,” Hartung added. “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.
“No matter how much anyone likes the non-Windows Microsoft products, without the historical Windows/Office sales and profits Microsoft is not sustainable.
“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.”
He also said that Microsoft will be hitting the gaming division with “enormous layoffs over the next three years.”
Those are some pretty bold predictions. What do you guys think?