Microsoft's Xbox brand will be “sold to someone like Sony”, failure is “inevitable”

[TGO]

The analysts are at it again. This time, a US firm predicts Microsoft’s Xbox brand is on a downward spiral.

Could MS run into severe trouble across the next three years? One analyst certainly thinks so, beginning with the company’s console division.

“The entertainment division will be spun off, sold to someone like Sony or possibly Barnes & Noble, or dramatically reduced in size,” says 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.”

Hartung also suggests the company will be hit with “enormous layoffs over the next three years”, alongside the closure of Microsoft’s online division as the organisation plows money into combating iOS.

“Microsoft makes more than 75 per cent of its profits from Windows and Office,” he 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.”

Scathing words indeed. Thanks, MCV.

Source: http://appygamer.mobilesrepublic.com...icleid=6222204

Thought you guys would enjoy this, I lol'd
Not sure if serious though

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[Lethal_NFS]

Failure is not an option.

[radgamer420]

lol What a ridiculous article. Makes for an entertaining read though.

[X2]

Borrowed

[LfCpS3]

I, I actually laughed at this.

While i prefer SONY/PS, i would not want them to have a monopoly.

Plus MS still bring A LOT to the consoles and are a big part of it now. No way they will end it.


I heard its profitable?

[radgamer420]

Yeah I wouldn't want to see any one company monopolise the industry. Stiff competition drives these companies to do better which in turn is good for the consumer.

[TGO]

I knew you guys would like it

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[Blacksite]

Apart from the Halo franchise, I don't know how else you could consider Microsoft successful in their games division.

[radgamer420]

Apart from the Halo franchise, I don't know how else you could consider Microsoft successful in their games division.

I thought the MS gaming division was profitable. Maybe not? Depends what you mean by successful I guess.

[*goo]

If there's any shred of truth to this claim, I expect we'll see Microsoft move away from timed and/or purchased exclusivity of third party products - that must cost them a fortune. Money that probably doesn't see any real benefit/return on the investment.

[radgamer420]

If there's any shred of truth to this claim, I expect we'll see Microsoft move away from timed and/or purchased exclusivity of third party products - that must cost them a fortune. Money that probably doesn't see any real benefit/return on the investment.

And eventually ends up on PS3 anyway.

[Vulgotha]

I was under the impression the Gaming portion of MS was financially buoyant.

[TGO]

And eventually ends up on PS3 anyway.

Basically

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[Blacksite]

I thought the MS gaming division was profitable. Maybe not? Depends what you mean by successful I guess.

I guess, whatever IPs are still profitable. First thing that comes to mind is Halo. I don't know about their other games.

[Soldier 95B]

That is a funny article. Considering the Xbox/Xbox Live divisions keeps making profits every year. LOL.

[radgamer420]

I guess, whatever IPs are still profitable. First thing that comes to mind is Halo. I don't know about their other games.

I'm pretty sure Halo, Gears and Forza are all profitable. Horizon bombed in the US so that one propably lost money. And Fable got turned into a Kinect game so I'm not sure how that did.

[DeviousOne]

Wow I honestly don't see that happening xbox is one of mS's strongest brands at the moment these people are always wrong anyways...

[Fon]

I agree with, radgamer420. Sony gaining a huge chunk of the market will be terrible, especially(while not solid), when they patented a way to weaken the second hand market.

An interesting topic but I don't see how the Xbox division could go downhill and potentially be bought by, Sony(Which I can't see happening until the company stabilizes).

[Soldier 95B]

Wow..I didn't even bother to look at the source. Never mind, not even worthy of discussion.

[TGO]

I agree with, radgamer420. Sony gaining a huge chunk of the market will be terrible, especially(while not solid), when they patented a way to weaken the second hand market.

An interesting topic but I don't see how the Xbox division could go downhill and potentially be bought by, Sony(Which I can't see happening until the company stabilizes).

To be fair we already know what its like for Sony to dominate the Market, ala PS2

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[robvandam111]

I can see it now, PlayStation All Stars 2...Helghast Soldier and the Chimera drinking at the bar. Master Chief comes in...and everyone else just spits out their drinks.

[admartian]

lol wut? The Xbox as a brand is failing? Umm okay. Maybe not doing as well as MS hoped I can believe. But failing to the point where they need to sell is a bit big.


I guess it's all Apple/fanboys FUD wishing for MS and Sony to fail in the console gaming market so they can tout the iPads etc.

[Sub-stance1]

lol...that sound ridiculous. This Hartung person is the same journalist who wrote similar things about Sony last year for forbes.


http://www.forbes.com/sites/adamhart...reat-company/2

[shingi70]

Dude is one of those Huber doom sayers.

Sent from my Nexus 7 using Tapatalk HD

[Morganator]

To be fair to the analyst, he does have a valid point concerning the entertainment division being seen as a distraction to Microsoft's fleeting attempts to save its OS division. We don't know how profitable the entertainment division really is but with Windows 8 bombing as hard as it has since its initial release, we can't expect Microsoft as a company, to be pleased at their current profit margins and declines and overall market position. They may actually be looking into selling portions of the company to offset these declines. How much they do sell is up in the air and they may not see it necessary to sell anything. One thing is for certain. I hope Microsoft has learned a lesson regarding how they treat prospective buyers of their OS. Treating them like criminals by locking the OS to a PC's Mac Address is no way to get sales. Also limiting the user's freedoms on the desktop is a big no-no. People shouldn't be forced to buy third party software to customize the look of their desktop.