Mon, Jan 21, 2013 | 11:19 GMT
Microsoft’s Xbox brand will be “sold to someone like Sony”, failure is “inevitable”
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.
84 comments
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#51
Psychotext
21/01/13, 4:38 pm
“But in the end PT hits are hits. I think we are/will see a trend to toss out integerty in favor of generating traffic.”
Sure, but if they damage their reputation in the business world (especially in finance) then all the hits in the world wont save them compared to what they’ll lose.
#52
fearmonkey
21/01/13, 4:55 pm
Maybe these kind of articles can be headed up with a tag, like TEa’s Flamebait Fiesta.
I have seen it all
Sony is Doomed
Nintendo is doomed
Xbox is doomed
Apple is doomed
God bless steam, so far its not been doomed, but give it time…..
#53
ChrisMustoe
21/01/13, 5:03 pm
Love my job, since I’ve been bringing in $5600… I sit at home, music playing while I work in front of my new iMac that I got now that I’m making it online(Click on menu Home)
http://goo.gl/a7HXF
Happy New Year!
#54
Cobra951
21/01/13, 5:47 pm
@52: It just doesn’t stop, does it? Everything is doomed.
#55
G1GAHURTZ
21/01/13, 5:54 pm
It does happen, though.
SEGA, Atari, etc…
#56
Cobra951
21/01/13, 6:02 pm
Irrelevant assholes making far-flung predictions to get their 15 minutes also happens.
#57
G1GAHURTZ
21/01/13, 6:04 pm
Indeed it does.
#58
Ireland Michael
21/01/13, 6:22 pm
@55 And those companies’ demises were backed up by years of financial problems, poor sales and a lack of consumer interest.
Microsoft is doing fine. Sony not so much, but that has more to do with the wider company and terrible management than anything inherently wrong with the PlayStation brand.
Whoever wrote this original article is an idiot, and I have no idea why the hell he is being given attention beyond the convenience of an easy flamebait article.
#59
DSB
21/01/13, 6:27 pm
And the article is gone
#60
G1GAHURTZ
21/01/13, 6:34 pm
Yeah, I wasn’t going to comment on this article, because I don’t think it deserves a second’s serious thought, but I just wanted to point out that previous heavyweights have failed in the past.
Sony, MS and Nintendo don’t appear to be anywhere near that stage yet, but let’s not kid ourselves that none of them could ever be ‘doomed’ at some stage.
#61
hitnrun
21/01/13, 7:32 pm
There is something to this line of thought for all 3 companies. Remember, the point is not to “win” or “survive,” it’s to make money, and for Sony and MS the point is to make money as an overall conglomerate. If MS finally changes its leadership and the new folks decide that the Xbox remains an expensive distraction that’s actually competing with the company’s more profitable endeavors to boot, they’ll cut it without a second thought.
Personally, I wouldn’t mind Xbox going away, even as a 360-only owner this gen. I have not enjoyed my experience with the console the last few years since NXE and they’re more or less advertising that the 720 is going to chase the “home entertainment” Wii casual gimmick rainbow. I’m aware, however, that just because I won’t like something doesn’t mean it won’t be profitable.
#62
ariessiren
21/01/13, 8:02 pm
360 is huge in the west but thats about it. nintendo and sony are big in all regions. huge difference. 360 barely exists in japan. i think they should have released a handheld. handheld gaming is huge. 3ds and ds rule the handheld industry. i liked xbox alot but i need games with creativity and artistic flair, you wont find those games on 360 its all shooters. plus charging people to play online is a huge ripoff.
#63
Gheritt White
21/01/13, 8:34 pm
@ 62: “i think they should have released a handheld.”
Yeah, ‘cos the PSP and Vita have done *so* well for Sony.
#64
wishdokta
21/01/13, 8:51 pm
Me still waiting for an analyst predicting analyst jobs will be disappearing.
#65
manamana
21/01/13, 9:31 pm
Zune … Mpfhrrrhahahahaa!
#66
kassandrakevin4
21/01/13, 11:34 pm
my roomate’s mother-in-law makes $62 an hour on the laptop. She has been without a job for seven months but last month her pay check was $15094 just working on the laptop for a few hours. Go to this web site and read more… http://goo.gl/Qu4Ci
#67
Samuel
21/01/13, 11:38 pm
He suggests it might be sold to Barnes & Noble? Did this not confuse the hell out of anyone else? Even if we just accept that everything else this guy said was a load of crap, is such a suggestion meant to be remotely believable to anyone? Am I missing something or what was he smoking?
#68
nhowell14
04/02/13, 5:39 pm
I’m sorry, but if you don’t acknowledge the fact that Microsoft is going to be in trouble soon, then you are indeed an idiot or an xbot. The simple fact that we as American idiots don’t realize that the Xbox ONLY SELLS WELL IN AMERICA and maybe that’s because we are stupid enough to plop down an additional $60/year for an online service that is not that much better, if any, than the cheaper or free online services offered by competitors. Worse yet, the 360′s main competition, the PS3 just caught up to its life-time sales even being a full year behind. Just recently announced 360 sales figures are horrific, but then again so are the other one current/next-gen consoles. although history has shown Microsoft has no problem leaving old tech behind and even went so far to (surprisingly) admit that Direct X, the tech the xbox was NAMED AFTER, is no longer evolving which has rendered it useless. ON top of which, Windows phone, windows 8, surface and pretty much everything else Microsoft based is going down a very steep cliff. If Apple doesn’t provide a superior product, then someone else does.
Its perfectly okay to root for the underdog and your team, but after the experiences I’ve had to go through with everything Microsoft, I have no respect nor a want for any of their products, how anyone else does is just above my comprehension. Bottom line is that if you can’t acknowledge Microsoft may indeed be in a pickle, then you need to take off the Ballmer reality distortion field.
#69
nhowell14
04/02/13, 5:43 pm
‘@ 62: “i think they should have released a handheld.”
Yeah, ‘cos the PSP and Vita have done *so* well for Sony.’
You do understand the PSP has sold more hardware units than either Microsoft based consoles, right? That’s just one console. The PSone/2 have both sold over a 100 Million, something that no Microsoft product has actually accomplished. “But gee guys, they spin themselves so well here and their hardware is amazing, software is so polished and bug-free that there’s no way that Microsoft may be sinking!!!”
Wake up hahaha seriously, whatever Microsoft defending idiot that is out there.
#70
Rinslowe
19/02/13, 11:42 am
Unit sales aren’t everything. Xbox 360 was a financial failure. From a gaming perspective, it was and still is a very nice piece of entertainment hardware.
But it wouldn’t at all be surprising if MS were looking to get out of the game.
Just as well there would be a home for all those excellent, quality titles and their respective studios…
#71
nklh4x0r
22/02/13, 6:41 pm
Well i don’t care about consoles…
#72
jolly963
24/02/13, 8:38 am
@69 Awh god what’s that smell, Oh wait it’s ballshit. That was a desperate attempt to say you didn’t waste your money when you bought a psp/vita.
#73
Blade247
28/02/13, 1:44 pm
Sold to Barnes and Noble? WTF? This guy is a dufflebag. Whatever firm this douche crawled out from under needs to crawl back. “anal”-ysts always have something to say. Sony is doomed, Ninetendo Wii wont work, this guy in particular needs a job, a real job.
#74
Blade247
28/02/13, 1:57 pm
@ #69.. and all other Sony Fanboi’s wake up, you lost this round. “an Online service that isnt that much better? Are fn stoned? I have both consoles, PS3 Online is BRUTAL and that’s being kind. And for your edification…Sony is bleeding and has been.
http://www.escapistmagazine.com/news/view/120447-Sony-Lowers-Expectations-for-2012-Vita-PSP-Sales
AND….
http://www.nowgamer.com/news/1760932/xbox_360_sales_still_better_than_ps3_npd.html
AND…
http://blogs.seattletimes.com/brierdudley/2013/02/14/npd-xbox-leads-console-sales-for-25th-consecutive-month/
If you come to a battle of wits, at the very least take liberty and arm yourselves.
#75
Blade247
28/02/13, 1:59 pm
#69… some more education…
http://www.vg247.com/2013/02/15/npd-january-xbox-360-moves-28100-units-report-puts-wii-u-sales-at-57000/
Reading is fundamental…
#76
kaffikjelen
28/02/13, 2:10 pm
Yea, the prophet of Forbes hath spoken, and all the congregation did burst out into rage.
Amusing.
#77
connorthedevil
04/03/13, 4:11 am
cool
#78
zacking007
08/03/13, 10:02 pm
Silly fanboys.
If you’re going to argue about consoles, then don’t expose us all to your cancerous posts.
#79
nhowell14
19/03/13, 3:13 pm
I’m sorry, but if you can’t see that MS is in trouble or don’t think they should be put out of business, you need to Wakedafukup! This is a company that has somehow found a way to make it a standard to charge you an additional online fee just to play your already paid for subscriptions of Hulu and Netflix on Xbox, wants you to pay for EVERY version of Office you put on EVERY DAMN WINDOWS PC, not to mention forcibly makes people lie about Bing or any other competitior’s product by throwing free money or products at them, blatantly copy Apple’s every move and somehow DOESN’t get the crap sued out of them….
I mean do i really have to go on? I know Xbox has made fond memories for a lot a people and myself/friends included. But there is no getting around that it’s from a company that should be out of business just for the sake of progress for the rest of the technological world!
Please ooh please just TRY and tell me I’m wrong.
#80
Gadzooks!
19/03/13, 3:35 pm
#79
What would be the point in arguing with you? You’re clearly a nutcase.
Smile, nod, walk away. That’s how to deal with nutters.
/nod
#81
Richenbaum
20/03/13, 1:30 am
Sounds like someone wants some low price MS stocks.
#82
tendoboy1984
30/04/13, 10:47 pm
Selling the Xbox division to Barnes & Noble? What the hell? Where did he come up with this nonsense? B&N is a book seller, they have no interest in game consoles.
If anyone bought the Xbox brand, I’d expect it to be HP, Panasonic, or Apple.
#83
nollie4545
30/04/13, 10:51 pm
MS, this could be the huge company which flogs software on a scale not accomplished by any other rival company ever in the history of mankind?
You think they are at all worried by their gaming/console division making a loss for a bit? Dream on. Its short change for these guys.
#84
RocknRolla
08/05/13, 7:23 pm
Sony would know what to do with xbox .. make a more adult box than a child box, think guys no more exclusives
almost every game available for both consoles 
not a bad thing imo.. most games do sell on consoles anyway
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