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FEATURED VOXPOP Bras
On the future of some gamers
By Bras
Posted on 05/22/13
Before Microsoft and Sony do something regarding their future in the video game business, I wanted to write, and I've wanted it for a long time now, but other things kept getting in my way, and fearing that tomorrow might be too late, today will have to do.   Months ago,...

GAMING NEWS

Microsoft Will Fail, Xbox Brand To Be "Sold To Someone Like Sony" According To Analyst

Posted on Monday, January 21 @ 10:21:16 Eastern by Alex_Osborn


Despite the roaring success of the Xbox 360, some who are allegedly "in the know" believe that it's only a matter of time before Microsoft crumbles beneath the weight of the competition.

According to Forbes' Adam Hartung, Microsoft's “entertainment division will 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 they have no idea how to profitably grow this business unit.”

Hartung went on to paint an even gloomier picture for the Xbox manufacturer, not only predicting that we'll see “enormous layoffs over the next three years” but also downright failure.

Microsoft makes more than 75 per cent of its profits from Windows and Office. Less than 25 percent 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.

Is Microsoft really in trouble? Could the next Xbox truly be the last console from the company? As long as I continue to get more Halo (be it on a Sony or Nintendo platform) I'll be happy. Share your thoughts in the comments below.

[Via]



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Comments
  • Barth_Vader
    Barth_Vader

    Joined: Nov 2005
    Posted: Jan 21st, 2013 at 10:32 am
    halo sucks the major one.
  • BigTruckSeries
    BigTruckSeries

    Joined: May 2006
    Posted: Jan 21st, 2013 at 2:11 pm
    While I'm not a fan of Halo's gameplay, their cutscenes and production are pretty good.

    Thing is, I feel this article is absurd. Xbox 360 is a "roaring success" so why would the next model to be released not be?

    thanks to Microsoft's games for Windows strategy, there should be absolutely nothing stopping the next Xbox from succeeding.

    #1 On the release day, they WILL sell 100% of their released units - with people scalping on Ebay and Craig's list.

    #2 Unlike Sony, Microsoft believes in backwards compatibility and they'll be able to keep selling games designed for Xbox 360 for at least a year into the NextBox's life.

    And how can this author not mention how poorly Sony is actually doing? They are having their asses kicked on every front: by Apple, Vizio, Microsoft and Nintendo. Their intellectual properties are weak. They have NOTHING that sells as well as Halo or Gears of War and KINECT has been more successful than MOVE.

    If anyone is in trouble, it's SONY.
  • BlazingLion
    BlazingLion

    Joined: Dec 2012
    Posted: Jan 21st, 2013 at 3:44 pm
    I'm a PC gamer, but I do own both the PS3 & XBOX360. Sadly enough Sony is seeing a larger profit margin from their gaming division then the XBOX360 is, (especially from psn+) although this is a recent development it seems it will only get worst for MS as this generation continues. If the new "720" doesn't alter the Live membership (making it more like PS+) and seriously prove it's worth the hardware upgrade. Things will begin to look bad. Especially considering Windows 8 is slated to have Vista similar lows sell figures. Leaving the gaming department without the usual deep pockets to gamble a bit. Honestly I'm more excited for the PS4 and Steam box then any other Console, Although considering I'm using two HD6970's I don't expect to leave PC gaming anytime soon.
  • BigTruckSeries
    BigTruckSeries

    Joined: May 2006
    Posted: Jan 22nd, 2013 at 4:27 am
    Microsoft OWNS the worldwide PC industry. Chrome is only popular in a few sectors. Meanwhile Sony - regardless their profits on PS3 - which I doubt there are any considering every single system is sold at a loss - is having its ass kicked on every single front. Apple, Vizio, Microsoft...etc.
  • phlogiston
    phlogiston

    Joined: Nov 2012
    Posted: Jan 21st, 2013 at 10:35 am
    If they keep up that "no used games" thing, it probably will be their last console.

    You know, I get the feeling that every single video game company is taking away the exact WRONG thing from the Steam model,
  • Lethean
    Lethean

    Joined: Jan 2001
    Posted: Jan 21st, 2013 at 10:36 am
    Sold to Barnes & Noble?

    Riiiight...Theyll' buy the product with all their funds from all those Nooks being sold...

    ...Oh wait
  • danielrbischoff
    danielrbischoff

    Joined: Nov 2009
    Posted: Jan 21st, 2013 at 11:06 am
    My thoughts exactly. Thumbs up.
  • OdiousLupous
    OdiousLupous

    Joined: Jul 2011
    Posted: Jan 21st, 2013 at 2:09 pm
    Breakfast nooks? Do they do remodeling?
  • sandineyes
    sandineyes

    Joined: May 2008
    Posted: Jan 21st, 2013 at 11:06 am
    The link seems to be dead.
  • wildmario
    wildmario

    Joined: Jan 2007
    Posted: Jan 21st, 2013 at 11:07 am
    That's mighty high claims right there. I'm gonna bookmark this article and see if it holds true in 3 years.
  • BigTruckSeries
    BigTruckSeries

    Joined: May 2006
    Posted: Jan 21st, 2013 at 2:12 pm
    IT WON'T.
  • Kakulukia
    Kakulukia

    Joined: Nov 2005
    Posted: Jan 21st, 2013 at 11:08 am
    Judging from the number of exclusives they released in the past year/announced for this year, they'll either have something huuuuuuge next gen or crash and burn.

    Most of Xbox's business practices revolt me, so unless they change those, they'll get no support from me anyway. Paying 50$ a year to have full access to the games I already paid top dollar for, AND be assaulted with incessant advertisement as welll? Fuck off, son.
  • LawnGnome
    LawnGnome

    Joined: Apr 2007
    Posted: Jan 21st, 2013 at 11:21 am
    "Battle for saving Windows"!? Even after their latest flop they're still going to hold onto their 92% (!!!!) global OS market share. I want some of the crack this guy is smokin'.
  • BigTruckSeries
    BigTruckSeries

    Joined: May 2006
    Posted: Jan 21st, 2013 at 2:12 pm
    EXACTLY. Micrsoft basically controls the PC computing industry with Windows platforms and Office. I'm trying to understand where this obvious MS-hater is getting these predictions.
  • Jonathan_Leack
    Jonathan_Leack

    Joined: Jan 2012
    Posted: Jan 21st, 2013 at 11:23 am
    The appeal of Xbox Live is beginning to wear off and Microsoft certainly doesn't have enough exclusives. I can't say this won't ever happen, but I'm skeptical.
  • oblivion437
    oblivion437

    Joined: Nov 2006
    Posted: Jan 21st, 2013 at 11:38 am
    The link is dead and a search for Adam Hartung's contributions shows his last article to be on January 8 of this year. It's looking very strongly like the piece was yanked.
  • --Henry--
    --Henry--

    Joined: Jan 2010
    Posted: Jan 21st, 2013 at 11:44 am
    The only good news for Microsoft I've heard recently revolves around the contract they bolted down with the military, which is certainly a nice chunk of change, but it isn't enough. I'm fairly certain that the end of the entertainment division is near, but I strongly doubt that Microsoft will entirely cease to exist in the foreseeable future. There will be many cuts made, but based on cash-flow, Xbox has to be the first.
  • SolidSevchinko78
    SolidSevchinko78

    Joined: Jun 2012
    Posted: Jan 21st, 2013 at 12:14 pm
    If this would happen, I would die a very happy person. Leave the video game consoles to big boys Microsoft and get back to making unreliable OS.
  • NecroWolf
    NecroWolf

    Joined: Oct 2005
    Posted: Jan 21st, 2013 at 6:27 pm
    Arrogance? Check. Dismissive attitude about the Xbox? Check. Avatar from a Playstation exclusive title? Check. Yep, fanboy. Hi there, how is it narrow-minded land? It seems kinda lonely over there, it looks like you would do well to try other entertainment systems, broaden your horizons a bit. Being a fanboy? Yeah that isn't a good thing.
    I love my new PS3, but I could never lock myself down to one or two systems, there are just too many good titles for all them. Locking myself down to one or two brands just seems... stupid.
  • SolidSevchinko78
    SolidSevchinko78

    Joined: Jun 2012
    Posted: Jan 22nd, 2013 at 10:10 am
    Excuse me smartass but I own a 360 and Wii as well! I don't only own a PS3! And I have been burned by Microsoft quite a bit when it comes to the 360. How many 360's have you been through because of the RROD? I'm tired of people acting like the XBOX 360 is god, and when I point the obvious out I get attacked every time. And what about your avatar?? Can I attack it like you attacked mine? Must suck to be right all the time huh??
  • NecroWolf
    NecroWolf

    Joined: Oct 2005
    Posted: Jan 22nd, 2013 at 10:56 am
    Maybe next time you shouldn't come off as a fanboy, because it pretty much read like it. You made no mention in your original post as to owning multiple consoles. As for my Avatar? Go for it, I mock it myself. It's Ruri from Martian Successor, an anime, and I use it because she constantly calls people idiots, and once said everyone is an idiot including herself. Quote applies here.
    Also... chill. Post wasn't intended as hostile, a bit sarcastic, maybe, but not hostile.
  • SolidSevchinko78
    SolidSevchinko78

    Joined: Jun 2012
    Posted: Jan 22nd, 2013 at 1:52 pm
    Then good sir, let me apologize for my actions. I was uneccessary, and I'm sorry.
  • De-Ting
    De-Ting

    Joined: Nov 2006
    Posted: Jan 21st, 2013 at 12:22 pm
    Isn't this exactly what everyone wants? For there to only be one console?
  • wildmario
    wildmario

    Joined: Jan 2007
    Posted: Jan 21st, 2013 at 12:28 pm
    People don't know what they want, even if they claim they do. One console is damn convenient, but that's just a monopoly waiting to happen.
  • Klandathu
    Klandathu

    Joined: Apr 2008
    Posted: Jan 21st, 2013 at 8:54 pm
    Sean Connery approves.
  • Ivory_Soul
    Ivory_Soul

    Joined: Nov 2005
    Posted: Jan 21st, 2013 at 12:30 pm
    Whenever an article says "According to Analysts" I tend to ignore it.
  • OdiousLupous
    OdiousLupous

    Joined: Jul 2011
    Posted: Jan 21st, 2013 at 2:10 pm
    100% agree with that point.
  • OdiousLupous
    OdiousLupous

    Joined: Jul 2011
    Posted: Jan 21st, 2013 at 2:10 pm
    Oops, commenting on phlogiston
  • Lenin17301
    Lenin17301

    Joined: Jan 2007
    Posted: Jan 21st, 2013 at 3:42 pm
    In the past weeks Forbes have unleashed a torrent of Doomsaying articles against everything Microsoft related, I'm guessing Google may have something to do with it, since they pretty much declared war agains MS. My honest opinion is that while it may be true that the Xbox brand is not profitable on the short run, on medium and long terms it will be profitable, because it will the umbrella multimedia brand on every product MS offers (Windows 8, WP8, obviously Xbox 360 and the next Xbox, Surface, etc), and with the release of the Surface Pro at a passable price, the market for touchscreens should see a price cut, making Windows 8 more easily usable, I don't see anybody replacing Windows 7/8 on PCs, home or portable. So no, is not "game over" for Microsoft.

    Sorry for the pro MS rant, but the prospect of a Steam-Google-Android-Linux run world worries the heck out of me, so I'm kinda partial to any alternatives (Apple or MS) to those mentioned companies.
  • drathbone
    drathbone

    Joined: May 2011
    Posted: Jan 21st, 2013 at 3:42 pm
    per cent?
  • pennpsu
    pennpsu

    Joined: Sep 2010
    Posted: Jan 21st, 2013 at 5:50 pm
    I wonder if Mr Hartung and his clients have recently take a short position regarding MicroSoft? Almost everytime an opinionated article pops up like this its a pretty obvious attempt to move a stock price. Last I checked Sony was still selling PS3 units at a loss, with total losses at around 6 billion reported for the last fiscal year.
  • pennpsu
    pennpsu

    Joined: Sep 2010
    Posted: Jan 21st, 2013 at 5:52 pm
    And Nintedo reported their first operating loss last fiscal year. About 5 billion. With a B.
  • tinymhg
    tinymhg

    Joined: Jun 2011
    Posted: Jan 21st, 2013 at 11:07 pm
    "Predicting the future is the art form of fools." George Lewis Stevenson
  • usaglory
    usaglory

    Joined: Mar 2009
    Posted: Jan 22nd, 2013 at 5:51 am
    Regardless of who ends up winning this is gonna be a pretty interesting game of chess between these two companies and we all get to see it unfold.
  • AcidTk03
    AcidTk03

    Joined: Mar 2011
    Posted: Mar 11th, 2013 at 5:03 pm
    an expert wrote this...maybe a sony fanboy. an expert reviews all content

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