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Jan 23 2013
By: Murderstyle75 Treasure Hunter 8926 posts
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Xbox might be in trouble.

[ Edited ]
23 replies 236 views Edited Jan 23, 2013

http://www.gameplanet.co.nz/news/1020701.20130122.Microsofts-Xbox-division-doesnt-make-money-may-be-...

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, while losing 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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PlayStation MVP
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Re: Xbox might be in trouble.

Jan 23, 2013

Whoa lets see what happens...

 

If sony buys it Sony will rule with a iron fist.

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Fender Bender
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Re: Xbox is in trouble.

Jan 23, 2013

Wow, I wouldn't mind if Sony picks up the Xbox. There are plenty of its games to be had....

 

 

 photo 220dee8b-5bcd-4c72-9468-b21cfc72f31f_zpsfd870647.jpg
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PIayStation MVP
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Re: Xbox might be in trouble.

Jan 23, 2013
I find this hard to believe, especially since Microsoft now considers the Xbox to be one of the main pillars of the company (the other two are Windows and Office). A powerful brand that they built for years.

While I'm not that surprised that the Xbox division hasn't been profitable (Sony has been in the same boat). I don't believe that the online-division just means XBL, Microsoft has other major online ventures like Bing and it is difficult to compete against Google.

Articles 7 months ago that I could find show that the Xbox division is profitable:http://www.gamesindustry.biz/articles/2012-07-19-xbox-completes-another-profitable-year-as-xbox-live...

If anything in that article is true, Microsoft should cut their losses and cancel the X720, it wouldn't make any sense to develop a next generation console if there are concerns with the division's profitability in the long run...

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PlayStation MVP
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Re: Xbox might be in trouble.

Jan 23, 2013

Look at their stock chorts for the past 3 decades. They aren't going anywhere, at least not quickly, so predicting doom may be a bit of a stretch, for now. Time may prove him right, in the end, but nothing is imminent.

 

However, overall, there certainly is no positive momentum in MS's favour.

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Ghost of Sparta
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Re: Xbox is in trouble.

Jan 23, 2013

havocsarmy wrote:

Wow, I wouldn't mind if Sony picks up the Xbox. There are plenty of its games to be had....

 

 


Then we can finally kick the "PS3 has no gaems."


To teach is a moment's superiority; not to, everlasting.

Fabulous!
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Sackboy
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Re: Xbox is in trouble.

Jan 24, 2013

I saw a similar article on egn

 

http://www.egmnow.com/articles/news/analyst-believes-xbox-brand-will-be-sold-to-someone-like-sony-fa...

 

 

I hope its true.I want MS to crash and burn so bad.

 

MS you turned your back on the core gammer and decided you rather make Mommy and Daddy and the little brats happy.Then go on to be hypocritical when not offering adult themes and avatar selections to please mommy and daddy then allowing adult advertising like beer to show up on your products for the 360.I could go on and on..

 

I just hope you Crash and Burn now.I want to see this happen so I can laugh at your destruction.

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Crap Box.. it only does everything poorly and charges you for it.
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I Only Post Everything
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Re: Xbox is in trouble.

Jan 24, 2013
I honestly don't want this to happen, at least until a new oponent appears. If SONY is the sole participant of the console wars (Nintendo plays his own way) then there is no reason to them to push themselves, there is no competition to bring us better games or system, we will only recieve what SONY wants to give us.

I don't care about MS or the xbox, but I want what is better for the gaming world.
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Re: Xbox might be in trouble.

[ Edited ]
Jan 24, 2013

 im afriad its  very much  true, i  reported this same concern rumor  a few months back.  One thing they  could be doing is  stop doing  gaming hardware consoles and start  puting it all in  the software part.  This  is what I think and alot of guys think  xbx720 is going to be something like a online gaming network only. Not a  pure hardware console device. maybe  a some type of cable box or dish to excesss a netwrk via online. which  would be  cheaper to do becuase  can they focus on software and they have a online network. a dish to make is no more than 100$

 

 A pc market software  gaming selling site like apple store. hp store. .etc etc. If you notice everyone is going the mobile, digital  route and pc route becuse its cheaper if  own alot software.   I agree they made money but  you alway have debts to meet which  will always tke like 60% or something like that. Psn and ps+ and  ps home  program  is saving  sony  skin  genre.  They are smart   they broke even on the hardware on the console 2-3 yrs ago and seeing is  profits and the software is doing great profits.

 

 This is why e3 2013  is a huge deal, we have to  what they say, this will effect the gaming  climate worldwide. This  is very close to what nintendo  did when they were looking at closng  dwn rumors and the  ceo   gave a remarkable speech.  Saying "nintendo is about hardware and will continue to make hardware!!." Not  did he stand firm  it rang true for them. lol.  They ran away with   wii console and nevr looked back.

 

 But think they be ok they have  good folk with degree there., they  are very good in the digital software  gaming buisness. there only costly fault was fighting  apple yrs ago and   trying to put  them out of biz a few yrs ago almost did.. Apple came back and  they are not joking with  Ms in  any  fashion they are trying to put them under.  I find it unique that apple  didnt  try harm nintendo or sony directly they went right after Ms. Although  sony and ninted  took a lot hits from the  war apple is on with  Ms. Its rumored apple is making a huge announcement at e3 2013. I think and  they are going totry to finsh ms off once and for all. I honestly think nintendo and  sony will  some how survive if they(apple)  do  get into gaming but  ms not so much.

 

  Like they always say never try to  run the old dog out the  yard. He been around longer  and  he will  fight  to the end to stay in the yard..

 

 

 

 

Mcbuttz78

vp-psn legioniaree group.

Seek wisdom, not knowledge. Knowledge is of the past, Wisdom is of the future

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PIayStation MVP
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Re: Xbox might be in trouble.

Jan 24, 2013

I have confirmed that the Online division of Microsoft does not include XBL, it basically includes Bing search and MSN portals.

 

XBL is part of the Interactive Entertainment division

 

http://www.microsoft.com/about/companyinformation/ourbusinesses/en/us/business.aspx

 

Here is a visual representation how Microsoft's various divisions stack against each other in terms of profitalbility. Based on this chart, I see no reason for Microsoft to drop the entertainment division. It may not be hugely profitable for Microsoft, but they aren't making the losses like the online division consistantly does...

 

 

 

chart

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