Microsoft’s Xbox Division Will Be “Sold to Someone Like Sony”
According to Forbes contributor Adam Hartung, Microsoft‘s “failure is inevitable,” and its “entertainment division will be spun off, sold to someone like Sony or possibly Barnes & Noble, or dramatically reduced in size.”
Hartung went on to explain that Microsoft doesn’t know how to turn a profit with the Xbox, saying,
“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 also believes the company will suffer “enormous layoffs over the next three years,” and will see the closure of Microsoft’s online division as the organization invests more money into combating iOS. He added:
“Microsoft makes more than 75 per cent of its profits from Windows and Office. 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.”
Of course, take this all with a grain of salt. People have claimed the sky is falling before.