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Microsoft will sell Xbox brand to someone like Sony says analyst



We don't usually post stories based on the thoughts of analysts, after all, half the time they either spout out the obvious or talk a load of rubbish. This story though, we couldn't resist.

According to a Forbes contributor and US business analyst, Adam Hartung, Microsoft's inability to adapt to market changes means that its "failure is already inevitable," and in his opinion it's the Xbox division which will be first in the firing line.

"The entertainment division will be spun off, sold to someone like Sony or possibly Barnes & Noble, or dramatically reduced in size," Hartung stated. "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 predicts "enormous layoffs over the next three years," with as many as half of its employees being shed. He also predicts a closure of its online division as Microsoft continues to battle against iOS.

"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."

Talk about pulling no punches. Talking rubbish though? Probably.


Thanks, MCV.

Edited On 21 Jan, 2013

Comments
( 38 )
troublemaker's avatar
troublemaker 4 years ago
Absolutely not! Microsoft may not be moving with the times, but they do have an extremely loyal fanbase for their consoles that will keep them afloat over this generation and the next. They will inevitably burn themselves out with their attempt at intergration with PC, Phone and Tablets, but even through those, laying out cash to Acti for Call of Duty extras will keep the majority flowing towards the xbox for years to come
Pyroloveridge's avatar
Pyroloveridge 4 years ago
Brilliant, some plum got paid to do this analysis...
Anonymous user's avatar
And that's why they love their job!
Luke 4 years ago
MrHighway's avatar
MrHighway 4 years ago
I dont know much at all about the financial side of the businessess but it strikes me as odd that with Microsoft specifcally the Xbox side putting all this emphasis on the new Xbox and all these concepts such as Illumiroom that they'd then sell it out to one of their main competitors.....like I said I dont know much about the business side so I could be way out and they could sell anyway *shrugs*
Anonymous user's avatar
Alan 4 years ago
He said all this before the nurse gave him his morning tablets and sent him back to his padded cell. Microsoft are doing pretty well and are the forfront of online console gaming with xbox live. Dont get me wrong sony are catching up(nintendo just slowely shuffling behind) but I have no doubt the next xbox will brake the mould again with its online community and ease of use.
rick75fowler's avatar
rick75fowler 4 years ago
really really can not see this ever happing to be honest some silly man throwing out figures to shake the apple cart before the new consoles comes me thinks
slapnutzuk's avatar
slapnutzuk 4 years ago
What a load of tosh lol. The 360 is profitable for Microsoft on XBOX LIVE Gold subscriptions alone! Add that to the immense revenue made from the marketplace and your in the billions!
HappyNoodleBoy's avatar
which is a shame because Xbox live is pathetic, and if they truly are making profit from it they dont deserve to. not a big fan of having to own gold in order to access free apps, apps already pay a monthly sub to, and pay to gain access to online gaming that's no better than the free service Sony offer. even more so when a dash is full of adverts. I would love to see M$ being forced to leave the gaming market due to their greedy ways backfiring
HappyNoodleBoy 4 years ago
MrHighway's avatar
I have to agree with the reply - I couldn't afford to continue my subscription to Gold and was dismayed to see I could no longer access Netflix. After seeing the Playstation Plus scheme, the fact that they get a selection of free games, discounts and betas etc for their subscription makes me more likely to move across in the next console gen.
MrHighway 4 years ago
iMerle iDixon's avatar
you summed it up in the first 5 words. What a load of tosh.
iMerle iDixon 4 years ago
Carl-G's avatar
Carl-G 4 years ago
Well it's nice to see 1 negative Microsoft Xbox story i suppose on the internet :D But i can't see it really. I am sure Microsoft make a lot of money off gullible Xbox fans who pay for Xbox LIVE each year.
LFC Bywater's avatar
LFC Bywater 4 years ago
Whoever came out with this crap is an idiot, and shouldn't get paid to do what he does...
PrometheusFan's avatar
PrometheusFan 4 years ago
Oh dear... while Windows 8 HAS been a disaster, and Microsoft are very likely to keep pouring good money after bad in a futile attempt to make it a dominant force in the OS/apps marketplace I highly doubt even they would be stupid enough to allow their game division to take any of the heat likely to blow back on them from that course of action... not in a year when they have a new console launching. This is likely nonsense, and I don't know why they're listing Sony as a likely buyer either... they're not in a position to be buying anything right now.
Dead's avatar
Dead 4 years ago
ROFL
Loli-Nox-Tan's avatar
Loli-Nox-Tan 4 years ago
LOLZ
Beazi's avatar
Beazi 4 years ago
Biggest load of rubbish ever in the history of analysts. If Microsoft were to sell something off, it wouldn't be XBox
LFC Bywater's avatar
And it wouldn't be to sony
LFC Bywater 4 years ago
PrometheusFan's avatar
If it ever came to it(Unlikely though it is), they'd sell to whoever would pay. Why would they care who it was doing the paying?
PrometheusFan 4 years ago
Skiba's avatar
if what he says is true it makes no profit why would they not sell it? why would they not sell it to the company that has a profitable games division?
Skiba 4 years ago
Shuy's avatar
Shuy 4 years ago
Bill Gates said that he hoped in the future the Xbox would be profitable for Microsoft and I think it will be, silly article and why would Sony buy the brand?
Anonymous user's avatar
Aminu 4 years ago
Very unlikely, Sony doesn't seem to care about Xbox nowadays, seem to be focusing on Nintendo now more than ever.
PrometheusFan's avatar
I daresay they care less about Nintendo right now than they have in a very long time given the PS3 is now outselling both the Wii AND Wii U everywhere. With sales of 360 and PS3 almost neck and neck worldwide though, you'd best believe Sony and Microsoft's biggest concern on the gaming front right now is going to be what the other is doing.
PrometheusFan 4 years ago
Loli-Nox-Tan's avatar
Ah Kevin you lovely troll. The PS3 might be outselling the Wii U but the 3DS is outselling the Vita & I think Aminu was referring to the 'Screen in the PS4 controller' story
Loli-Nox-Tan 4 years ago
Dead's avatar
And let's face it, Sony have a long history of stealing ideas from Nintendo ;)
Dead 4 years ago
Skiba's avatar
Gloria that is not true Sony have the tech way before Nintendo difference is Nintendo rush it out.
Skiba 4 years ago
Skiba's avatar
Kevin never posts like a troll do you call him that because you hate what he is saying? a troll is very different to how he acts plus the reactions from a lot of you on here come across as wounded fanboys.
Skiba 4 years ago
Robichoico's avatar
The Dreamcast had a screen in it's controller didn't it? Not to mention there was that feature that allowed you to use the GBA as a controller in some games.
Robichoico 4 years ago
Loli-Nox-Tan's avatar
I'm only calling him a troll for funsies it might not look like it but i enjoy Kevin's little rants
Loli-Nox-Tan 4 years ago
Dead's avatar
What tech are you talking about Skiba, the screen in the controller, or maybe the wiimote rip off, or we could go further back with rumble or analogue sticks?

You also seem very ill informed on trolling, there are many styles of troll, kevin is just one of the more literate ones.
Dead 4 years ago
DynamiteWhyte's avatar
'let's face it, Sony have a long history....' quip. if that's made by kevin he'd get all the flack under the sun ;) Sony cares about both Microsoft and Nintendo, in terms of if they have an idea that works and sells, they'll want that idea to make money. It's how business works. It's like how Nintendo are now doing 1080p consoles, and Microsoft'll now be doing blu-ray discs. They all piggyback off each others success.
DynamiteWhyte 4 years ago
Skiba's avatar
considering Move was being shown before the wii was even announced what are you on about? remote play was shown before the wiiu a 7 year old PS3 can communicate with the Vita.
Skiba 4 years ago
Coolsambob's avatar
Coolsambob 4 years ago
Can't see this happening. Though, if it did, I could see a massive queue of willing buyers...
Robichoico's avatar
Robichoico 4 years ago
Sony Xbox. Sounds like something the grannies come in and ask for lol. I seriously doubt Sony could afford to buy something like that however.
J-D's avatar
J-D 4 years ago
hahahahahaha.......i hope to god that guy isn't getting a paycheck.
Deltadee's avatar
Deltadee 4 years ago
I really wish this did happen then there would be no need to own more than two home consoles!
Kizzy's avatar
Kizzy 4 years ago
This is certainly not happening considering the amount of money Microsoft make from it. I just can't see it happening...Although the idea of only have to buy one console sure sounds a lot better :D
Anonymous user's avatar
Rachael 4 years ago
Can never see this happening, It's obvious that they make money, even off Xbox live subscriptions alone!!! I love my Xbox and if this did happen i would not convert to sony, i would just stick with my Wii U
James26's avatar
James26 4 years ago
Can't ever see this happening. I wish I was paid to do his job, I would make up some funny stuff all day long!

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